Evans Randall, the privately held UK investment banking and private equity group, has acquired Sovereign House in London's Docklands for £27 million (approx. 32 million), on behalf of a holding company in which it has co-invested with private investor clients from Saudi Arabia. The deal reflects a net initial yield of 7.2%.
Sovereign House, 227 Marsh Wall, London E14, was constructed in 2001 as an office building and converted to a data center by the tenant, a subsidiary of Telecity Group plc, the leading European data center operator which has a lease term remaining of 14.5 years. The building was purchased from a managed fund of Axa Real Estate.
Michael Evans, Chairman of Evans Randall, said: "The acquisition is further evidence of Evans Randall's commitment to London Docklands as a strategic investment location and gives us exposure to the rapidly expanding data center sector.
"Sovereign House offers asset management opportunities to create value for the investors given the location, the converted nature and the specialist use of the property."
As an asset management opportunity, Sovereign House complements Evans Randall's well-established portfolio of high quality, commercial real estate assets in prime London markets and strategic locations in Europe. It joins the group's other London Docklands holdings, which include the Financial Services Authority headquarters at 25 North Colonnade, Canary Wharf and 5 Canada Square, Canary Wharf, Bank of America's UK headquarters.
Michael Evans added: "We are delighted to be co-investing with two leading families from Saudi Arabia, illustrating the continued demand for good quality real estate opportunities in London among investors from the GCC region."
Evans Randall was represented by its retainer advisers CBRE.
Source: Evans Randall
