The prime City freehold asset was sold by Colliers Capital for £11 million (£650 per square foot), reflecting a circa 5% yield.
Colliers International advised on the sale of the 17,000 sq ft mixed-use property, let to a multitude of six tenants at a passing rent of circa £600,000 per annum exclusive, arranged over basement, ground and five upper floors. It is located on the north side of Austin Friars, connecting the square with Old Broad Street.
Theo Utton-Gaunt, City Investment from Colliers International said, “Foreign investors continue to seek performance assets with returns as low as 5%, with competition outstripping many domestic funds. A lack of quality stock in the market has also aided this yield compression, particularly on assets of this lot size.”
Edward Fairweather, Partner City Investment from Knight Frank LLP said "this is the fourth acquisition Knight Frank's City Investment team has sourced for clients in 2013 for four separate overseas clients. Something that is not easy to do in a market short of opportunities.”
Colliers International acted on behalf of Colliers Capital, advising Staffordshire County Pension Fund. Knight Frank acted on behalf of the buyer.