Almacantar has exchanged contracts with BlackRock UK Property Fund to acquire 125 Shaftesbury Avenue.
The building is Almacantar’s fourth major purchase in the West End. The property is situated close to world famous landmarks including the Royal Opera House and Covent Garden Piazza. It is just 2 minutes’ walk from Tottenham Court Road tube and the new Crossrail station which is set to transform this location.
The red brick building was built in 1982 and provides 190,000 sq ft of office and shopping space across ground floor and nine upper levels and, importantly, occupies a footprint of over an acre.
The property has been acquired on a freehold basis and is multi-let to a variety of tenants including Gucci, Yahoo! Europe and Lloyds TSB Bank on leases generating an annual rent roll of £6.4 million, predominantly expiring in 2014/6.
Commenting on today’s announcement Hugh Sayer, Investment Director, Almacantar said: “125 Shaftesbury Avenue is an excellent addition to our portfolio in a part of the West End that is transforming rapidly. The building gives us short term income whilst offering exciting longer term development options that can capitalise on the area’s improvement.”
Justin Brown, Portfolio Manager, BlackRock UK Property Fund said: “125 Shaftesbury has performed well during our ownership and we are confident this is a good deal for our investors. We will be looking to re-deploy the sale proceeds in core-style assets with good long-term income streams to help our pension funds and other institutional clients meet their financial goals.”
CBRE represented BlackRock UK Property Fund on the disposal.