Commercial West End Property: Orchard Street Purchase £36m Office
A commercial West End property has sold for £36 million. Threadneedle investments sold the offices to Orchard Street for £12 million more than they paid in 2009.
Commercial West End offices have been acquired for £36 million reflecting new found interest in the London office space market.
Orchard Street Investment Management LLP have acquired the 32,000 sq ft of space across the ground and five upper floors of the West End property. The deal reflects an initial net yield of 4.7% for the commercial space.
The offices were already fully let by Threadneedle Investments, who sold the West End property on 61-65 Conduit Street, W1 to the commercial property investment company on behalf on St James’s Place property funds. Chairman at Orchard Street, Chris Bartram said of the acquisition: “This is a high quality asset and an excellent addition to the St James’s Place portfolio.
“The West End office market is one of the few areas with genuine prospects for rental growth and 61-65 Conduit Street is well placed to benefit from this.”
The £36 million sale price of the office space is more than 50% above the £24 million Threadneedle paid for it two years ago from O&H Properties. This suggests that there is still demand for West End property, contrary to recent reports that companies are looking to relocate their businesses to alternative, cheaper locations.
Orchard Street sold office space at 60 Cannon Street, EC4, in August on behalf of Orchard Street UK Special Situations Fund for £30.9 million. This reflected a yield of 5.67% to DTZ Investment Management’s pension fund clients.
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