BMO Commercial Property Trust Limited has disposed of Cassini House located in St. James’, London. The property is a prime multi-let freehold office building and represents the second-largest holding in the portfolio. The company has sold the property for a total consideration of €169.6m (£145.5m), reflecting a substantial increase of 11% over the last external valuation of 30 June 2021 and 19% over the year-end valuation of 31 December 2020. The disposal represents the culmination of a long-term business plan which involved a complete refurbishment, introduction of new tenants and re-gearing of leases.
Richard Kirby, lead manager, commented: “Following a competitive bidding process in which the Company received several high-quality proposals, we are pleased to achieve a strong net initial yield of 3.2% for this trophy property and crystallise significant value for the portfolio. This disposal will allow the Company to promptly recycle capital in a strong pipeline and adjust sector weightings. We look forward to providing a further update of the use of proceeds in due course.”