Global real estate firm, CBRE, has advised BlackRock’s UK Property Fund on the sale of a prime freehold office building in London’s Covent Garden for £30.2 million.
Representing a net initial yield (NIY) of 4.84%, the 23,567 sq ft, multi-storey 65 Chandos Place was sold to a private Hong Kong investor consortium.
BlackRock UK Property Fund acquired 65 Chandos Place in 2012 as part of a wider portfolio and has since carried out an extensive floor-by-floor refurbishment to the building.
Paul Tebbit, Portfolio Manager of BlackRock UK Property Fund, commented: “Having held the asset since 2012, we have successfully concluded our business plan and made the decision to sell the asset in order to focus on larger opportunities more commensurate with the size of the Fund. Covent Garden continues to perform well and has seen significant improvement in local amenity, which will no doubt benefit the building and its new owners going forwards.”
Situated in the heart of one of the capitals most popular tourist and shopping venues, 65 Chandos Place continues to benefit from significant investment by major local landowners including Capital & Counties and Shaftesbury. In addition, several MIxed-use developments have further enhanced the appeal of Covent Garden, acting as a catalyst for growth.
Commenting on the purchase, Justine Wingrove, Joint Managing Director of GLS Estates, said: “The acquisition of 65 Chandos Place underscores the enduring appeal of Covent Garden as a highly attractive investment location for both UK and foreign investors. In recent years the Covent Garden market has experienced significant growth in rental levels providing an attractive future upside for the property.”