TIAA Henderson Real Estate has completed the €219 mln acquisition of 440 Strand in the West End of London from Legal & General Property (UK)

TIAA Henderson Real Estate (TH Real Estate) has completed the £175 million (approx. €219 mln) acquisition of 440 Strand in the West End of London from Legal & General Property.
The 180,480 ft² (approx. 16.722 m²) property is the headquarters of private bank Coutts & Co and has been acquired on behalf of the Henderson UK Property Unit Trust. The transaction represents a net initial yield of 4.34%.
With a long leasehold to the principal tenants, Royal Bank of Scotland, of 23 years, the Fund’s strategy continues to focus on high-quality properties with strong tenants on long leases. C.80% of the rental income is secured against the office element of the asset. The remaining 20% is let to a mix of retail tenants, restaurants and coffee shops, and present a number of interesting asset management initiatives.
Marcus Langlands Pearce, Director of UK Property Unit Trust at TH Real Estate and Co-Manager of the Henderson UK Property Unit Trust, commented: “By owning a landmark property in Central London, the deal further enhances the tenant strength and yield on the £2bn Henderson UK Property Unit Trust. Our strategy is to increase the Fund’s exposure to Central London and the property at 440 Strand provides a defensive, core asset with growth potential.”
 Source: TIAA Henderson