Redefine International and insurer Aegon's UK Property Fund have agreed the sale of 16 Grosvenor Street in London's Mayfair district to a private investor, for £35.6 mln (€49 mln).
Redefine International and insurer Aegon's UK Property Fund have agreed the sale of 16 Grosvenor Street in London's Mayfair district to a private investor, for £35.6 mln (€49 mln).
16 Grosvenor Street is a 1,460 m2 prime office building and is currently vacant. It is one of the 19 assets included in Redefine's £490 mln Aegon UK portfolio acquisition.
Signed in September, the deal involved the vehicle's entire portfolio comprising 19 single and multi-let properties with an occupancy rate of 97% and a value of £439.9 mln. A majority of the assets (45.2%) is for retail use, while offices represent 26.7% of the total and industrial the remaining 28.1%.
The transaction is being completed in two tranches; Tranche One, comprising nine properties, closed in October 2015, while Tranche Two, comprising 10 further properties, is due to complete on or around 1 March 2016.
16 Grosvenor Street forms part of the second tranche, and represents a purchase price of £29 mln.
Redefine said it has hired advisors Kames Capital to evaluate further disposals of the Aegon UK portfolio.
The exit price of £35.6 mln realises an immediate £3 mln profit for Redefine, after adjusting for the 50% profit share, pre-agreed with the Aegon UK Property Fund in the event of a sale ahead of the Transaction’s completion.
Mike Watters, CEO of Redefine International commented: 'While this is a prime asset, it is also low-yielding and, as such, sits outside the immediate, income-focused strategy for Redefine International.'
