WELPUTi, a specialist fund investing in Central London offices, managed by Schroders and advised by Grafton Advisors, has exchanged contracts to sell the freehold interest in 7-8 St. Martin’s Place, WC2, for £65 million to Chanco Investment Group, a Hong Kong property investor. The sale price reflects a net initial yield of 3.6% and a capital value of £1,360 per square foot. This transaction represents Chanco Investment Group’s first acquisition in the London market.
WELPUT acquired the 48,000 sq ft island site close to Trafalgar Square in 2011. The six storey property comprises four floors of offices, ground level retail, basement storage and car parking facilities. Current occupiers include the Post Office and Pret a Manger at retail level, and office occupier Redwood Publishing.
Nigel J. Kempner of Grafton Advisors, Property Adviser to the Trust, commented:
“WELPUT acquired this asset off-market with a view to considering a major refurbishment at the end of the occupational leases. This opportunity to sell to Chanco Investment Group provided the ability to maximise the value returns to unitholders whilst providing the opportunity to recycle the capital into new investments across central London, such as our recent Regents Wharf transaction.”
WELPUT was represented by Strutt & Parker. The purchaser was represented by CBRE.
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i West End of London Property Unit Trust (WELPUT)
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