Schroders Capital has completed the sale of 3-8 Whitehall Place in London at a yield of 3.5% to Legal & General.
The £155.25 mln (€184 mln) sale is on behalf of its new client, Greater Manchester Pension Fund (GMPF).
3-8 Whitehall Place is a 95,000 ft2 government building fully let until June 2029.
When a refurbishment project is completed in 2023 it will be occupied by the Department for Business, Energy and Industrial Strategy.
Philip Scott, fund manager, said: ‘With this sale, we have successfully completed the business plan for our new client, GMPF. The sale capitalises on the strong current demand for government-backed income in key locations. We will now look to opportunistically reinvest the proceeds into higher yielding assets offering the potential to deliver attractive returns from our active asset management.’
CBRE and DLA Piper acted for GMPF.
Cushman and Wakefield and Clifford Chance acted for the purchaser.
