Greycoat, the London investment and development partner, has continued a busy period buying offices, by completing on the acquisition of 55 Strand from Legal & General Investment Management.
The £24.75 million acquisition, or a circa 7.9% yield, of the 30,000-square-foot Midtown office is a third recent London purchase by Greycoat.
In May it completed the acquisition of 120 Aldersgate Street, in Clerkenwell EC1, from Legal & General. Market sources said Greycoat had paid around £23 million, which reflects a net initial yield in excess of 10% and a capital value of sub-£500 per square foot.
The property comprises 45,089 square feet of office and ancillary accommodation arranged over ground and eight upper floors, 75% of which have been recently refurbished and have EPC ratings of A or B. The property is multilet to four tenants with two vacant floors. Fineman Ross advised Greycoat while RX London advised L&G.
Greycoat completed its acquisition of 140 Leadenhall Street, a 45,000-square-foot building in the City, from Aviva for £20.3 million or a net initial yield of 6.38%, in June. CBRE advised Greycoat while Knight Frank advised Aviva.
Originally constructed in the 1930s in an art deco style, 55 Strand is close to Charing Cross Station and immediately opposite Covent Garden. It comprises 30,000 square feet over basement, lower ground, ground and 8 upper floors.
In a LinkedIn post Greycoat said it intended to apply its "core values of providing high-quality asset management and tenant engagement alongside securing the long-term future of the asset through improvements to its energy performance and wellness credentials".
Fineman Ross advised Greycoat while Chapman Petrie advised LGIM on 55 Strand.