An office space property has been bought for £25.2 million by Orchard Street Investment Management LLP on Wood Street.
The 45,500 square foot leasehold building was said by the commercial property investment manager to provide “excellent opportunity to upgrade and add value at the end of the existing occupational lease”.Chief Information Officer Gary Felce said: “We see the London City office market as one of the few markets to have good rental growth prospects over the next few years”.
He continued that there are plans to refurbish the building to give it an edge over other properties that have been let in the market.
Felce added: “125 Wood Street is an attractive combination of a high yielding investment opportunity with significant potential for us to add value. Orchard Street still has substantial funds available for investment and are seeking further investments in both office and retail sectors for all our clients”.
The investment manager currently has over £1.5 billion of assets under management despite having been set up as recently as 2006.
The purchase means the company will receive a net yield of 9.3 per cent.
The property was bought from Invesco Real Estate who have been providing investment solutions to the UK since 1996. It had bought the building in 2005 when it was occupied by Dresdner Bank.