UK-based investment manager Orchard Street has acquired 26 Red Lion Square in London from Legal & General Property.

UK-based investment manager Orchard Street has acquired 26 Red Lion Square in London from Legal & General Property.

The purchase price of £85.1 mln (€102 mln) represents a net initial yield of 5.09%. Orchard Street acquired the property on behalf of clients.

The building is located close to the junction of Kingsway and High Holborn, 250 metres from Holborn tube station.

Originally developed by Stanhope Kajima Developments in 1989, LGP recently concluded a comprehensive £7 mln refurbishment of the property to create a headquarters office building.

It comprises around 104,204 sq ft (9,680 m2) of Grade A office and ancillary accommodation, arranged over lower ground, ground and six upper floors, as well as a 2,040 sq ft retail unit.

Following the refurbishment, the offices are now fully let to four tenants - Cable & Wireless, Group M (Mediacom), Haysmacintyre and TSL Education Ltd - on 10-year lease terms from 2013.

Additional works were carried out to improve the green credentials of the building and all leases now include green clauses.

Gary Felce, partner at Orchard Street, commented: ‘This is a high quality multi-let office property located in a core market which we believe is set for further growth, supported by the proliferation of businesses moving to Midtown and the forthcoming Crossrail station which will be opening just a short walk away at Tottenham Court Road.’

Savills acted for LGP and Cushman & Wakefield represented Orchard Street.