The worlds largest commercial real estate services firm CBRE has announced that Royal London Asset Management has purchased 25 Soho Square from Aviva Investors for £75.35 million.
Situated in the middle of Soho just 100m from the upcoming Crossrail Elizabeth Line at Tottenham Court Road, the site is a rare garden square freehold in the heart of the city.
Keith Miller, Senior Fund Manager and Head of Offices, Royal London Asset Management (RLAM) commented: “25 Soho Square perfectly fits our strategy of buying best-in-class buildings in prominent central London locations. Occupier demand for Soho is strong as evidenced by the leasing success at our redevelopment of 6 Warwick Street at rents in excess of £100 per-square-foot. Our outlook for the market remains positive, and we believe Soho will continue to outperform.’
The 44,000 sq ft Grade A office building was compressively refurbished and extended in 2012 by the award-winning architect, Buckley Gray Yeoman; the building provides substantial terraces on five of the building’s floors.
The multi-million-pound site has been multi-let to five tenants and provides Aviva with a balanced income stream with immediate reversion on the settlement of outstanding rent reviews.
David Diemer, Head of UK Balanced Funds at Aviva, commented: “Since acquiring 25 Soho Square in 2010, we have undertaken a number of asset management initiatives, including a comprehensive refurbishment to produce a best-in-class office building. Having delivered on our business plan, we decided that this is the appropriate time in both the asset and the market cycle to exit, crystallising the significant value uplift created over our hold period. We will continue to focus our investment strategy in our target locations where we believe we have the opportunity to add value on behalf of our investors.”
CBRE advised Royal London Asset Management, while JLL acted for Aviva Investors