In a deal costing approximately £91.55 million, the Catalyst European Property Fund has purchased a number of London properties, including a Stratford shopping centre and a 113,000 sq ft office building.
With these purchases, the Catalyst European Property Fund aims to strengthen its portfolio of London commercial property, as well as exploring further opportunities for effective development in the area.
The deal also allows the Fund to develop 44 Broadway, currently owned by the Employment Tribunal Service, a Central Government (Office & Administration) facility.
The properties were sold by Land Securities, who have also recently let 21,600 sq ft of office space on Mark Lane, close to Fenchurch Street.
The shopping centre and 44 Broadway represent a yield of 7.25 % for Land Securities, whilst the office building and a development site are priced at £5 million.
Head of retail investment at Land Securities, Gary Sherwin, said, “We are pleased with the sale which has benefited from the limited amount of stock currently available in the investment market.”
He added, “The funds from the sale will be channelled into other activities including more immediate development opportunities previously outlined by the Group.”
Due to a shortage of supply and increasing demand, prices in the region are being pushed higher and London becomes an increasingly coveted area for office space.
Jones Lang LaSalle acted for Land Securities, whilst Lunson Mitchenall acted for the Fund, with finances provided by pbb Deutsche Pfandbriefbank.