CBRE Investment Management has bought a data centre building close to Canary Wharf in London's Docklands from Abrdn for £48.65 million.
The 88,419-square-foot data centre at Cloud House, 1 Muirfield Crescent, E14, is west of Crossharbour DLR station and south of Canary Wharf, and is single let to Digital Realty at a passing rent of £2.86 million a year until March 2048, according to Savills' latest City Investment Watch, which describes it as the biggest transaction completed in May.
The price paid reflects a 5.5% net initial yield and £550 per square foot.
Savills reports that in May, the City investment market continued to have low levels of activity, with £116.1 million transacting across five deals, an average lot size of £23.2 million. This brought the year-to-date turnover at the end of May to £590.4 million across 30 deals, which is 77% lower than the five-year average. The brokerage adds that after seeing the lowest first quarter turnover since 1996, a similar record looks likely for the half-year.