UK REIT McKay Securities as completed the freehold disposal of two small and adjoining office buildings on Blackfriars Road in London.
UK REIT McKay Securities as completed the freehold disposal of two small and adjoining office buildings on Blackfriars Road in London.
The buyer is Barts Charity that helps fund the six hospitals of Barts Health NHS Trust and its medical school.
The transaction volume of £21.5 mln (€30 mln) reflects an initial yield of 3.8%.
The properties are located on Blackfriars Road in the heart of the popular Southbank area, opposite Southwark underground station. The larger property, 203 Blackfriars Road (1,950 m2), was built in 1985. It was acquired by McKay for £3.9 million in 1999 and occupied by Lloyds Bank until lease expiry in 2011.
Simon Perkins, managing director of McKay, said: 'Comprehensive refurbishment works repositioned 203 Blackfriars Road, enabling us to take advantage of the significant improvement in rental values in the Southwark market. Our pre-let underlined the appeal to occupiers, and the sale has released the value created from the refurbishment.
'The sale price is a reminder of investor appetite for quality product on longer leases with reversionary potential. We will recycle the sale proceeds into refurbishment and development projects within our portfolio, and new acquisitions.'
