Development Securities today announces that it has acquired the long leasehold interest in a 146,000 ft² (approx.13,563 m²) office building in Waterloo for £87.0 million (approx. €107.1 million), at a 5.1 % net initial yield, in partnership with Proprium Capital Partners ("Proprium"). Under the terms of the joint venture, Development Securities has taken a 15% equity stake in the project with Proprium taking the remaining 85%.
Becket House is located on Lambeth Palace Road, less that 500 meters from the River Thames and in close proximity to Waterloo station. The twelve storey office building is let on a 12.5 year unexpired lease to EY. Guy's and St. Thomas' Charity own the freehold to the property and 137 years remain on the long leasehold.
Michael Marx, Chief Executive, Development Securities PLC said: "Today's acquisition presents an excellent investment in a Central London office building that benefits from a secure, long-term income stream. Becket House is in a prominent location within easy access to several major transport links and with views over the River Thames, within an area that is undergoing significant change and regeneration. A number of redevelopment options may also be considered over the medium to long-term in order to add value to our investment."
Philipp Westermann, Proprium's Head of Europe said: "Similar to our recent investments in Delhi and Edinburgh, this acquisition is part of our continued strategy to back best-in-class real estate operators in unlocking value in high quality assets in city center locations. We are excited to partner with Development Securities, who has the vision and capabilities to take advantage of the optionality that this property offers."
Source: Development Securities