The Crown Estate has acquired the freehold interest in Princes House in St James's for £87 million, representing an earnings yield of 4.7%.
Purchased from Aviva Investors, the 81,000 ft² (approx. 7,525 m²) property straddles Jermyn Street and Piccadilly and has an impressive line-up of occupiers, including:
Princes Arcade - a retail arcade of 16 units let to tenants such as Loake and Barker shoes;
Over 6,000 ft² (approx. 557.4 m²) of retail on Jermyn Street and Piccadilly;
33,000 ft² (approx. 3,065.7 m²) of office space on Jermyn Street;
Commenting on the news James Cooksey, Head of St James's, said: "We are delighted to have acquired Princes House in St James's. The acquisition is in a strategically important location and represents the last remaining gap in our interests on the north side of Jermyn Street. We look forward to building strong relationships with the occupiers, which include the globally important BAFTA HQ, as well as exploring the full potential of the Princes Arcade."
Kevin Price, COO at BAFTA, said: "This is an exciting time for St James's. Under The Crown Estate's guardianship, the area is undergoing an amazing transformation and we are delighted to be a part of it. BAFTA shares a strong historical connection to The Crown Estate and looks forward to working with them towards their vision for the St James's of the future - and in particular their ambitions for promoting the rich cultural heritage of the area."
The investment forms part of our £500 million (approx. 635 million) St James's investment program, and brings Princes House back into Crown Estate hands for the first time in 182 years. We are the largest owner of freehold property in the core West End, and have made substantial progress in St James's in the last 18 months. It has now acquired nearly £240 million (approx. 305 million) of new property interests as part of its strategy to secure a host of high profile lettings for the area.
Cushman and Wakefield, Cluttons, and Burges Salmon advised The Crown Estate.
Source: The Crown Estate