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Brexit has brought uncertainty and doubt to British society, but for foreign investors, it is offering an array of opportunities. Many City and West End office buildings have been bought by Chinese investors, while a private Hong Kong investor has acquired an office building in the City of London from Legal & General for £32.4 million.
The family office acquired the 43,382 sq ft Garden House, which is located close to the Bank of England. The building appreciates a yield play of approximately 5%.
Eugene O’Sullivan, London’s leading Chartered Surveyor, and Managing Director at Morgan Pryce, explains; “London will see more foreign investment. This is due to good fiscal terms on trophy assets, city office buildings and even speculative developments around the UK.”
Legal & General put the office on the market last July. Jones Lang LaSalle was the instructed agent. The office building was set a guide price of £34 million and a yield of 4.75%.
Garden House produces short-term income of £1.78 million a year from sole tenant, Deutsche Bank. Deutsche Bank will vacate when its lease expires in 2023 and move to a new consolidated London headquarters at Landsec’s 21 Moorfields.
O’Sullivan states; “Investors, predominantly from Asia, have focused on acquiring well-let buildings in London in the past year. The industry is hoping that investors will now be prepared to take on development risk for better and stronger returns.”
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.