27th Jan 2017 07:27
LONDON (Alliance News) - UK Commercial Property Trust Ltd on Friday said it has sold an office asset in Soho, London, for GBP30.5 million to real estate asset management company Alduwaliya Asset Management.
The London-focused commercial property investment company said it completed the off-market sale of the property at 13 Great Malborough Street, which is currently let to Japanese consumer electronics maker Sony Corp's research and development arm. The lease on the property expires in September 2018.
The selling price for the property reflects a 3.3% net initial yield, and was bought by UK Commercial Property Trust in 2006. The asset comprises of around 23,000 square feet of office space.
Alduwaliya last year bought the adjacent site, 10-12 Great Malborough Street, which is also single let to Sony.
"Having been approached by the owner of the adjacent building we felt that, despite this asset's good location, now was an appropriate time to crystallise a strong return," said Will Fulton, fund manager of Standard Life Investments which advised on the deal.
Standard Life Investments is part of the Standard Life PLC group.
"This sale also removes short-term letting risk from the portfolio and the potential for significant capital expenditure. We aim to re-invest in line with our ongoing strategy to generate a higher income which we believe beneficial in the current political and economic market environment," Fulton added.
UK Commercial Property Trust said it was "actively looking at a number of investment opportunities".
By Hannah Boland; [email protected]; @Hannaheboland
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