Welput, the Central London real estate fund managed by Schroder Real Estate, and advised by Grafton Advisors, has exchanged contracts to sell 3 St James’s Square, SW1 to a consortium of investors in Joint Treasure International Limited for £135 mln (€159 mln).
The deal reflects a net initial yield of 3.96% and a capital value of £2,609 (€3,071) per ft2.
3 St James’s Square was purchased by Welput in 2012 and was refurbished in 2015 to provide 51,747 ft2 of Grade A office accommodation. The property has since been let to tenants including Lodha Developers, Riverstone Europe and Silver Ridge Asset Management.
'The sale of 3 St James’s Square is in line with Welput’s stated strategy of crystallising performance upon completion of the business plan and is a strong result for Welput’s investors,' commented Jourdan Rajwan of Schroder Real Estate. 'The sale demonstrates Welput’s ability to successfully reposition buildings across Central London.'
'Having completed a successful letting campaign, which was testament to the quality of the refurbishment, the asset has been sold in order to recycle capital into the portfolio including the major refurbishment project at 20 St James’s Street and also to target new investments,' said Ker Gilchrist of Grafton Advisors.
'This sales process generated strong demand from overseas investors, particularly from Asia, seeking quality buildings in prime locations and benefitting from long term income,' he added.
Welput was represented by Strutt & Parker, Colliers International and Allen & Overy.
