UK property fund manager Standard Life Investments has purchased two properties in the West End of London on behalf of its Pooled Property Pension Fund. The leasehold interest of the properties - 42, 44-48 Wigmore Street and 5 Welbeck Street - was acquired from Minerva (City) for £40.75 mln (EUR 45 mln).
UK property fund manager Standard Life Investments has purchased two properties in the West End of London on behalf of its Pooled Property Pension Fund. The leasehold interest of the properties - 42, 44-48 Wigmore Street and 5 Welbeck Street - was acquired from Minerva (City) for £40.75 mln (EUR 45 mln).
The transaction reflects a net initial yield of 6.64%.
Both buildings have office accommodation over five floors with a retail showroom on the ground floor of 5 Welbeck Street.
'The quality of the asset and prime West End location makes this a key holding for the fund. We are well placed to benefit from renewed rental growth in the Central London office market as the UK economy recovers,' said Mike Hannigan, fund manager of Pooled Property Pension Fund.
The transaction is the fund's first acquisition since the property market started recovering in the third quarter of 2009, he added. Hannigan: 'We are looking to selectively invest in good quality Central London assets which will offer strong growth potential and secure income.'
The £1.49 bn Pooled Property Pension Fund also owns 105 Wigmore Street, which is an office building above Fiat, at the corner of Orchard Street. CBRE represented Standard Life Investments and Franc Warwick acted for Minerva (City).
