WELPUT, the Central London property trust managed by Schroder Real Estate and advised by Quintain Estates and Development plc has announced two significant transactions taking the total value of acquisitions and disposals in the year to date to circa £340 mln (approx. €479.7 mln).
WELPUT has exchanged contracts on the sale of 16-17 Connaught Place, London W2, for £110 mln (approx. €155.2 mln) to funds managed by GWM Group, the asset and investment management company, reflecting a net initial yield of 4.7% and a capital value of £1,344/ft² (approx. €20,443/m²). The 81,859 ft² (approx. 7,605 m²) property is multi-let to a range of tenants including Spencer Stuart and Hunter Boot, the renowned wellington boot company.
In a separate transaction, WELPUT has acquired the long leasehold interest in 7 Bishopsgate, London, EC2, from clients of TH Real Estate for £48.9 mln (approx. €69 mln) reflecting a net initial yield of 4.9% (including rent guarantees) and a capital value of £873/ft² (approx. €13,279/m²).
Comprising 56,020 ft² of Grade A office space, 7 Bishopsgate was recently refurbished to a high standard and is multi-let on rents ranging from £42.5/ft² (approx. €646.5/m²) to £53.5/ft² (approx. €813.8/m²). With two vacant floors it provides WELPUT with the ability to offer flexible accommodation into a City occupational market that is restricted in the supply of sub-10,000 ft² (approx. 929 m²) floor plates.
WELPUT was advised on the sale of Connaught Place by Strutt & Parker and CBRE, and on the purchase of 7 Bishopsgate by CBRE. GWM Group was advised by Cushman & Wakefield and Astezar Capital, and TH Real Estate by Savills.
Source: Schroder Real Estate
