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39 Victoria Street is a prime office block located a few minutes’ walk to St James’s Park underground station and the House of Parliament and is soon to be the residence of our MPs. The building contains 88,500 sq. ft. of office space over nine storeys and some retail space on the ground floor.
Back in 2009 British Land purchased the freehold interest 39 Victoria Street from Aviva Investors Property Trust for £40.25m, reflecting a net yield of 8.37%. It was let to the Bank of America until July 2012 at a rent of circa £47 psf, earning the building its name as Bank of Boston House. The bank then fully sublet all nine floor to a variety of tenants including the Labour Party. CBRE acted on behalf of the vendor and Knight Frank represented British Land.
By September last year, British Land let the entire building to the Corporate Office of the House of Commons and will become the new home of our MPs whilst the Houses of Parliament are being refurbished. They took the space at a rent just below the asking which was £69.50 psf. It is thought British Land are looking to sell 39 Victoria Street for £140m which represents a yield of 4.25%.
Ollie Salter a surveyor at Morgan Pryce thinks, “A rental uplift in the Victoria area has had a large part to play for the increasing amount of investment deals going on there, also it is strange to see the government once again populating Victoria and it is quickly becoming a more high end mixed use submarket.”
This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.