UBS Asset Management sells central London office for £69m

UBS Asset Management has sold a central London office asset for £69m (€81m) to a Middle Eastern buyer.

The 1 New Fetter Lane complex was sold to the investor, a client of private equity firm GG Capital and CBRE, at a net 4.47% yield.

UBS said the 101,900 sqft asset was held in its Triton Property Fund.

Howard Meaney, head of global real estate for the UK, said: “In line with the strategy of UBS Triton, we acquired this asset at an early stage in Midtown’s growth cycle, and the area has since seen significant regeneration and improved transport connections, making it an increasingly sought-after central London business destination.”

A new lease on the asset was recently signed with Sullivan & Cromwell as its European headquarters until 2026.

GG Capital founder Karl Abawatt said: “London is a core focus for our investment strategy, and 1 New Fetter Lane presented a trophy headquarter building, well-let in an area we anticipate a high investment return following ongoing development and the completion of Crossrail in 2018.”

UBS AM said the deal was evidence London’s midtown district “remains attractive to overseas investors” as the area undergoes change through commercial development and infrastructure improvements in advance of the arrival of Crossrail in nearby Farringdon in 2018.