Orchard Street Investment Management has completed the acquisition of 6-10 St Andrew Street in London from Prestbury for £23.5 mln (EUR 29 mln), reflecting a net initial yield of 5.27%. The acquisition was made on behalf of St James' Place property funds.
Orchard Street Investment Management has completed the acquisition of 6-10 St Andrew Street in London from Prestbury for £23.5 mln (EUR 29 mln), reflecting a net initial yield of 5.27%. The acquisition was made on behalf of St James' Place property funds.
Situated next to Holborn Circus, the modern office building comprises 45,893 sq ft (4,300 m2) of office accommodation arranged over lower ground, ground and seven upper floors. It is multi let to five tenants including Canon UK, ET Group Services, Arcus Infrastructure Services, Carter-Ruck Solicitors and Pinnacle Housing.
Commenting on the acquisition Barney Rowe, partner at Orchard Street, said, 'With current average passing rent of under £31 per sq ft, we have identified significant potential to grow income, especially given its location in one of the most exciting areas of London.'
He added: 'We are confident that we will see strong rental growth, particularly on the back of Crossrail, the potential new Goldman Sachs campus development and New Street Square where rents have exceeded £55 per sq ft.'
Prestbury was advised by Franc Warwick. Orchard Street was advised by BNP Paribas.
