UK-based real estate investment manager Orchard Street has purchased One King Street, a mixed-use scheme in Hammersmith, West London, for £34.5 mln (€40 mln).
The vendor, London-listed developer-investor Helical, said that the sale price reflected a net initial yield of 4.85% and was in line with the March 2016 book value.
'One King Street is a prime asset which offers a combination of excellent office space with strong reversions on a number of floors and seven retail units which are very well positioned and benefit from strong footfall,' commented Philip Gadsden, managing partner at Orchard Street. 'Going forward, we are confident of undertaking a number of asset management initiatives to raise the income level and drive value.'
Helical acquired the property from receivers in 2012, before refurbishing the office space and adding an additional floor to the building. The asset currently comprises 3,347 m2 of office space on five upper floors, plus 1,022 m2 of retail units on the ground floor occupied by Boots and Café Nero, amongst others.
'Having delivered on our business plan to provide a good quality institutional grade investment, this had now become one of our more mature investments and we therefore took the opportunity to make this disposal, the proceeds of which will be recycled into our London development and refurbishment programme,' said Tom Anderson, senior investment executive at Helical.
Orchard Street was advised by Savills.
