UBS Asset Management (UBS-AM) announces it has sold 1 New Fetter Lane in London, EC4 to a private Middle Eastern investor client of CBRE, the global real estate adviser, for €81m (GBP 69m).
UBS Triton Property Fund ('UBS Triton'), which sold the property, recently negotiated a new lease on the 101,900 ft2 asset with Sullivan & Cromwell LLP, who has agreed to occupy the Grade A Midtown property as its European headquarters until 2026. The sale price reflects a net initial yield of 4.47%.
This transaction is further evidence that Midtown remains attractive to overseas investors as the area undergoes transformational change through commercial development and infrastructure improvements in advance of the arrival of Crossrail into Farringdon in 2018. Middle Eastern investment, in particular, has remained buoyant throughout the second half of 2016, deploying more than GBP 1bn into Central London since the EU Referendum.
Howard Meaney, Head of Global Real Estate – UK commented: “In line with the strategy of UBS Triton, we acquired this asset at an early stage in Midtown’s growth cycle and the area has since seen significant regeneration and improved transport connections, making it an increasingly sought after Central London business destination. Our team’s proactive asset management enabled us to bring 1 New Fetter Lane to market as a high-quality fully-let asset, benefitting from a strong covenant, which is evidently what has attracted the attention of CBRE’s client.”
GG Capital, a newly formed real estate private equity firm set up by Karl Abawatt has advised the private purchaser and will be managing the asset. Karl Abawatt comments: "London is a core focus for our investment strategy and 1 New Fetter Lane presented a trophy headquarter building, well-let in an area we anticipate a high investment return following ongoing development and the completion of Crossrail in 2018.”
UBS Triton was advised on the sale by Tudor Toone.
