Welput sells Central London office at 3.4% yield

Welput, a specialist fund investing in Central London offices, has sold the freehold interest in a 6,000 m2 property to an unidentified buyer for £55.4 (€71 mln), which reflects a net initial yield of 3.4%.

The Welput fund had acquired the office building at 21 Tothill Street, London SW1 in 2010 for £28.6 mln. The business plan for the property called for a comprehensive refurbishment, reletting and sale following the expiry of the lease to Towers Watson due in March 2015.

Nigel Kempner of Quintain said: 'Tothill Street was originally acquired to benefit from the improving office market in Westminster with a strong tenant in occupation. We have taken advantage of a strong capital market to sell our interest before the tenant vacates, crystallise the excellent return on our investment and recycle our capital.'

Welput, which is managed by Schroders and advised by Quintain Estates and Development, was represented in the sale by Strutt & Parker. The purchaser was represented by DTZ.

For more on the prospects for the UK real estate market, see the article and video interviews from our Outlook 2015: Europe/UK & Asia Capital Flows investment briefing.