Welput acquires core West End asset for EUR 82m

The West End of London Property Unit Trust (WELPUT), managed by Schroders and advised by Grafton Advisors, has exchanged contracts to buy the freehold interest in Buchanan House, at 3 St. James’s Square in London, from clients of Aberdeen Asset Management. The transaction price amounts to a total of £66 mln (EUR 82 mln). The sale price reflects a net initial yield of 4.5%.

Buchanan House provides 54,000 sq ft (5,000 m2) of office accommodation over 10 floors. Winchester House Property Company, a subsidiary of Diageo, has a lease on the entire building until June 2014 at a current passing rent of £3.1 mln per annum.

The transaction enables Welput to recycle capital into the core Mayfair office market following the recent disposal of Stratton House in Mayfair for £166 mln at a 4.2% initial yield.

'These recent transactions are in line with our strategy to crystallise profits and recycle capital into well located assets,' said Nigel Kempner, head of Grafton Advisors, part of Quintain Estates and Development. 'We are excited to be back buying assets in the core West End market, which will complement the rest of the portfolio’s focus on strong investment assets and short term development/refurbishment opportunities.'

Aberdeen Asset Managers were represented by Strutt & Parker and Welput was advised by CBRE.