German asset management company DWS is under offer to buy the London headquarters of environmental engineering consultant WSP for in excess of the guide price of £76 million or a 5.2% net initial yield, CoStar News understands.
Knight Frank was appointed by the vendor, the Trustees of Viscount Folkestone, last year to sell 70 Chancery Lane in Midtown. The 73,014-square-foot building is occupied in its entirety on a 15-year lease with no breaks.
WSP opted to stay at the building last year after an agreed refurbishment to best-in-class standards to create all-electric EPC A rated accommodation.
Knight Frank this week, in its annual London office presentation, said a key area of change for the London market this year is likely to be the return of institutional and global investment in core office investments, with Nick Braybrook, head of London Capital Markets, pointing out that the cycle has been unusual because of the near absence of prime, core asset activity last year.
Braybrook added then that two substantial core assets were under offer, 20 Manchester Square and 70 Chancery Lane, to institutional capital. Knight Frank has declined to comment on the identities of the buyers but market sources said DWS was in talks to buy the WSP building.
CBRE is advising DWS. All parties declined to comment.