UBS Asset Management's (UBS-AM) Real Estate & Private Markets (REPM) business has purchased an office building on London's Old Street for £25.9 mln (€29 mln) from Discretionary Corporate Pension Fund clients of Savills Investment Management.
The deal for Churchill House, in EC1, represents a yield of 4.3%. The 26,738 ft2 asset is multi-let to five tenants over seven levels, and has planning permission for an additional floor.
'This acquisition builds on REPM’s track record of transacting London office assets, and is a further demonstration of our confidence in the resilience of the market,' commented Howard Meaney, head of Real Estate UK at UBS-AM. 'Churchill House benefits from a prime position on Old Street, which is now firmly established as the location of choice for TMT occupiers, while there remains a shortage of quality office accommodation in the area.'
'We purchased Churchill House in 2012 and during our relatively short ownership we have completed a comprehensive phased refurbishment of the building,' said Lucy Winterburn, director of investment at Savills Investment Management. 'The decision to sell allows the fund to crystallise profit, for recycling into other development projects.'
UBS-AM was advised by JLL, while Savills Investment Management was advised by Springer Nicolas.
