In a favourable market situation, IVG Immobilien AG in London sold the office property, Washington House for €32.5 million (GBP 22 million) to the investor group Prudential Portfolio Investment Managers. This is equivalent to a net initial return of 5.0%.
The disposal generates satisfying book profits for IVG. These would impact the income statement in the third quarter of the 2004 financial year, commented Bernd Kottmann, Board of Management member responsible for portfolio management at IVG Immobilien AG. The sale of Washington House is one of the prepared selling activities for the second half year 2004 which IVG announced in its yesterday half year report.
Managing Director David Gibson, Head of the London IVG branch (IVG Asticus Real Estate Ltd.), commented on the sale as follows,' This transaction is in line with the IVG strategy of disposing selected properties suitable for the market at favourable points in time.' Gibson stated that since the beginning of 2004 the London office property market had been characterised by strong investor demand and rising office rent levels.
The building, 40-41 Conduit Street with over 2,560 m² office and retail space, is in the Mayfair district of London´s West End. In 1995 the property was completely rebuilt behind an existing retained facade. Washington House is fully let to five companies on long-term leases. Companies which work there include Allied Domecq, Japan Tobacco und Connolly Luxury Goods.