Tuesday, 28 October 2014
New West End purchase by Lothbury for major UK pension fund (UK)
Lothbury Investment Management has purchased an £18 million (€22.8 million) office building in a prime London West End location and completed the construction of a 174 bedroom student accommodation block in Glasgow, both on behalf of a retained client, as part of a segregated mandate for a major UK pension fund.
The office building is located at 6 Cavendish Place, close to both Crossrail and the Regent Street regeneration area, and is let to construction group Kier with 12 years remaining on the lease producing an annual rental income of £679,371 (€861).
The rent, which is considered reversionary, is linked to RPI, in line with the retained client’s investment strategy, providing a high residual value and inflation proof income.
The building comprises offices on six floors, totalling 12,882 ft² (1,197 m²). The vendor was a private investor.
Mike Toft, fund manager and director at Lothbury Investment Management, said: “The Cavendish Place property will raise this fund to over £250 million (€316 million). It is a very good purchase in a prime London location that, with the arrival of Crossrail and improvements in Regent Street, will deliver an excellent return for the fund.
Lothbury were represented by Cushman & Wakefield on the Cavendish Place property and Lawson & Partners on Dumbarton Road.