Orchard Street acquires 61-65 Conduit Street for £36 million (UK)

Orchard Street Investment Management LLP, the specialist commercial property investment manager, announces that it has exchanged contracts to acquire 61-65 Conduit Street, London, W1, from Threadneedle Investments for £36 million (approx. €42 million), reflecting a net initial yield of 4.7%. The acquisition was made on behalf of St James's Place property funds.

The property, in the heart of London's West End, is fully let and provides a total of 32,000 ft² (approx. 3,000 m²) of office and retail space across the ground and five upper floors.

Commenting on the acquisition Chris Bartram, Chairman at Orchard Street said, "This is a high quality asset and an excellent addition to the St James's Place portfolio. The West End office market is one of the few areas with genuine prospects for rental growth and 61-65 Conduit Street is well placed to benefit from this."

Orchard Street also announced this week that it has completed the acquisition on behalf of St James's Place property funds, of Straiton Retail Park in Edinburgh for approx. £24.5 million, reflecting an initial yield of 6.16%. The vendor was BA Pension Fund.

The Park comprises a terrace of six retail warehouses and two pod units with a total floor area of 71,371 ft² (approx. 6,600 m²). The park benefits from an Open Planning Consent including part food. Tenants include Laura Ashley, TK Maxx, Dunelm, Carphone Warehouse, Poundworld and Dreams.

Situated in South East Edinburgh, the Park is four miles from the city center and adjacent to the junction of the Edinburgh City Bypass. The surrounding area forms a major shopping destination for Edinburgh and the nearby towns with nearby occupiers including IKEA, Costco, Sainsburys, Boots, Next and M&S.

Commenting on the transaction, Chris Bartram said "This acquisition offers an excellent investment opportunity which we believe will perform strongly for St James Place. The combination of an open planning consent, proven market rents, strong covenants and strong demographics means the park trades exceptionally well and has all the characteristics necessary for growth."

Source: Orchard Street Investment Management

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