European investment, development and asset management company RE Capital has completed the sale of 1 Old Queen Street in London’s St James’s Park, to a private investor for £38.45 mln (€45 mln), reflecting a net initial yield of 3.83%.
This transaction follows a trio of early lettings at the 20,000 sq ft (1,860 m2) office building situated opposite Westminster Abbey, including a new record for the Westminster sub-market of £95 per sq ft.
RE Capital first acquired the building during the first lockdown for £24 mln, making it one of the only office investment transactions in Q3 2020, and has since invested £4 mln in a large-scale refurbishment and repositioning project. This included securing planning consent for a communal roof terrace over-looking Westminster Abbey and a private courtyard.
In a separate, transaction, RE Capital has acquired The Corner Building, 91-93 Farringdon Road, for £21.125 mln in a joint venture with SFO Capital Partners. The 18,859 sq ft office building is 58% let and is situated in close proximity to Farringdon Crossrail station.
RE Capital plans to reposition the building through a targeted capex programme to deliver a Grade A office asset.
Newman Leech, chief executive officer of RE Capital commented: ‘To secure such a compelling exit of 1 Old Queen Street, having recently achieved practical completion is a very strong endorsement of our original investment rationale, our asset management expertise and the future of high-quality offices in strong locations. We remain committed to both this part of London, having started construction at our UK flagship, Greycoat Stores, a 78,000 sq ft mixed-use destination development in Victoria, as well as the London office market more broadly and look forward to repositioning The Corner Building as a market-leading office.’
