GE Real Estate UK has sold 5 Savile Row, London, W1 to ING Central London Fund for £51.4 million (approx. €71 mln) reflecting a net initial yield of 4.15% after expiry of rent free periods.
5 Savile Row comprises 32,170 ft² of newly developed prime office accommodation. Fortress Investment Group (UK) Limited is the main tenant occupying 19,115 ft² on the second, third, fourth and fifth floors on an 11 year lease at an average rent of £91.17 per ft². At the time, the letting to Fortress Investment Group (UK) Limited last year was the largest of only three transactions to attract a rent of over £90 per ft².
Situated in the heart of the West End office district, GE Real Estate acquired the property in 2004 through its acquisition of Benchmark Group PLC and subsequently commenced the redevelopment of this site. The scheme was designed by architect Squire & Partners.
5 Savile Row, London
Mike Rowan, Managing Director of GE Real Estate UK, commented: "The sale of Savile Row is an excellent example of how we actively manage our investment portfolio. GE Real Estate identified an opportunity to change the profile of the building and redeveloped the scheme last year to provide high quality, modern office accommodation, aiming to secure long term tenancies with strong covenants. GE Real Estate remains committed to the Central London market and is constantly seeking investment opportunities where it can create additional value in the asset."
Grafton Advisors LLP acted as development advisors to GE Real Estate, while Franc Warwick acted as agent in the transaction. King Sturge advised ING.