AEW Europe has acquired 65-68 Leadenhall Street, EC3, a freehold office building in the City of London for approx.£18 mln (approx. €25 mln), on behalf of its Europe Value Investors Fund (“EVI” or the “Fund”), representing a net initial yield of 4.9% and a reversionary yield of 6.25%.
The 31,173 ft² (2,947 m²) multi-let building is located in close proximity to Bank, Aldgate and Liverpool Street stations and, as such, is set to benefit from the major Crossrail improvements that are currently underway. It is 99% let to a range of tenants from the insurance, shipping and legal sectors and, following the recent purchase of 24-28 Martin Lane, EC4, it is EVI’s second City of London asset.
AEW will implement a targeted asset management strategy and expects to increase net operating income through reversionary rental growth combined with the refurbishment of existing office space and communal areas.