The West End of London Property Unit Trust (Welput) has announced that it has carried out two new transactions totalling £82 mln (EUR 98 mln). The trust is advised by Grafton Advisors and managed by Schroders.

The West End of London Property Unit Trust (Welput) has announced that it has carried out two new transactions totalling £82 mln (EUR 98 mln). The trust is advised by Grafton Advisors and managed by Schroders.

In the first acquisition, Welput bought the freehold interest of 5-7 Vere Street, London, W1, from the University Superannuation Scheme (USS) for £22 mln. The purchase price reflects a short term net yield of 3.1% until the building becomes fully vacant for refurbishment.

The property comprises 3,213 m2 of space which is currently arranged as offices over three floors with ancillary showroom accommodation on lower ground and ground floor levels. The majority of the building is let to Gerald Eve until 2011, with a tenant only break option in December 2010, at a passing rent of £725,000 per annum. The remaining lower ground and ground floor showroom is currently vacant.

The purchase follows the recent acquisition of New Court, Carey Street, London, WC2A from the White Tower Portfolio for £60 mln, reflecting an initial yield of 6.8%.

The 14,400-m2 freehold office is currently fully let to the UK government at a rent of £4.3 mln per annum.

Jane Gravestock, Welput fund manager at Schroders, said: 'In the last six months, Welput has concluded over £140 mln of disposals with a view to recycling capital into properties that will benefit from the asset management skills of the Grafton team. We are very pleased to have completed these most recent transactions which we believe represent excellent opportunities to generate growth while the Trust continues to benefit from high quality income from its longer let core holdings.'