UBS Asset Management's Real Estate & Private Markets (REPM) business announces that its Triton Property Fund has acquired 42 Southwark Bridge Road, a prominent office asset located on London’s Southbank €85.2m (£75.66m). The property was purchased from a joint venture between Angelo Gordon and Beltane Asset Management and the price paid reflects a net initial yield of 5.31%.
Occupying a prominent 0.63 acre corner site in the heart of Southbank, 42 Southwark Bridge Road is arranged as three interlinked buildings, providing 96,714 ft² of newly refurbished office space spread across six above ground and two underground floors, including a 32 space car park. The property benefits from 135 metres of street-facing frontage just 400 metres south of the River Thames and has been acquired fully let to the strong covenant of Sungard Availability Services, on a newly signed 10-year lease with an upward only rent review after five years.
The defensive characteristics of this acquisition fit with Triton’s investment strategy, driven by the building’s micro-location of thriving Southbank, which has undergone significant regeneration in recent years and is now firmly established as one of London’s most dynamic commercial, residential and cultural destinations. A number of high-profile developments currently underway will further enhance the area, as it continues to draw an impressive line-up of major corporate occupiers who are attracted by the strong local infrastructure. 42 Southwark Bridge Road is within a 15-minute walk of six transport hubs, including four London Underground lines and three mainline rail stations, providing direct links to Gatwick airport.
This acquisition complements Triton’s diversified portfolio of 33 high-quality assets spread across the UK and supports its South East weighting, where approximately 57% of properties are located. In addition to the office sector, the Fund also comprises industrial assets, retail warehouses and student accommodation.
Howard Meaney, Head of Real Estate UK and Senior Portfolio Manager for Triton, commented: “42 Southwark Bridge Road fits seamlessly with our investment strategy – its in-demand location presents further growth prospects, and broader asset management opportunities offer further value-enhancing potential.”
