Japan’s largest quoted real estate company Mitsubishi Estate Company (MEC) has acquired a government-let Victoria office block for £90 million (approx. €106.6 mln) as part of its mid-term growth plan to double its UK portfolio by 2020.
The 86,500 ft² (approx. 8,035 m²) office building Clive House, 70 Petty France, SW1, was sold by German investor Real IS.
Clive House has fixed annual increases of 2.5%. It generates £4 mln pa, and is let to the Secretary of State for Transport, Local Government and the Regions until 2027.
In January Mitsubishi bought 1-19 Victoria Street SW1, also let to the Government until 2021.
MEC's UK managing director, Hiroyuki Arimura said: “This acquisition has an excellent covenant and fits in very well with our existing portfolio in terms of income profile and lease length. It offers stable income with fixed uplifts and a longer term redevelopment opportunity. We have a strategic goal of doubling our UK portfolio by 2020 and are actively seeking other central London opportunities particularly in the West End.
Colliers International advised MEC and Knight Frank acted for Real IS.