Evans Randall has confirmed the sale of 60 Gracechurch Street, its 125,000-ft² (approx. 11,600-m²) office investment in London EC3, at a yield of approximately 5.35% to a German limited partnership fund established by KGAL.
The offices at 60 Gracechurch Street are let to Allianz and the building also includes 4,500 ft² of retail let to Boots the Chemist. As part of the transaction, Evans Randall agreed the restructuring of the Allianz lease to provide an unexpired term of 15 years. The building has also been renamed Allianz House.
Evans Randall acquired the building in 2008 and is disposing of the investment as part of its ongoing asset management strategy.
Kent Gardner, Chief Executive of Evans Randall, said: "We are pursuing a strategy which combines high quality real estate acquisition with selected disposals of assets from our portfolio, very much on a case-by-case basis. On acquiring the property in February 2008, our objective was to seek an opportunity to refurbish the property and re-gear the lease.
"Following an assignment of the original lease from Commerzbank, we were able to agree a new 15-year term with Allianz. We are delighted to have been able to agree an off-market deal with KGAL."
Stefan Ziegler, member of KGAL management stated as follows: "Everything about Allianz House is fantastic. The location, construction quality and tenants are excellent and the building has been rated 'very good' using the BREEAM environmental assessment method. Opportunities like this are rare. Thanks to our long-standing business relationship with Evans Randall, we were able to secure an off-market deal on the property at a very fair purchase price."
Evans Randall was represented by its retained agents CB Richard Ellis. DTZ acted for KGAL.