One of the best-known and most iconic buildings in London's Mayfair has been placed on the market for sale.

22 Hanover Square is being marketed by H2SO on behalf of Scottish Widows Investment Partnership (now part of Aberdeen Asset Management) with offers in excess of £130m being invited for the freehold.

The entire property is let to international property consultants, JLL, at a current rent of £5.5mpa.  JLL's lease on the 87,444 sq ft building runs until 2017 at a current rent of £62.90 per sq ft which is well below the prevailing level for equivalent space in Mayfair.

In addition to its capacity for improved rental income, the building's attractions are also enhanced by the scheduled opening of Crossrail.

Already located just a short distance from the Oxford Circus underground interchange, Hanover Square will become arguably London's 'best connected' square when the new Bond Street Crossrail station opens in 2018. One of the station's entrances will be on the north west corner of the square and just 50 metres from 22 Hanover Square.

John Olney of H2SO comments: "Freehold assets of this quality and scale are rare in Mayfair and the Hanover Square area will be among the major beneficiaries when Crossrail transforms transport infrastructure in a string of locations across central London.

"The 2017 lease expiry date at 22 Hanover Square - and the potential to enhance the building prior to reletting - looks well-timed to coincide with the opening of Crossrail in 2018."

A sale of the building at £130m would reflect a net initial yield of 4% and a reversionary yield of 5.1% allowing for standard purchaser's costs of 5.8%.

Darryl Tidd, Investment Director in Aberdeen's Real Estate team commented: "We have taken the strategic decision to sell this prime office building and lock-in the strong performance generated from the asset. 

"We believe the sale will be well received by the market and give us the opportunity to re-cycle the proceeds of this investment for the benefit of the fund.  We will continue to actively identify opportunities which will add to portfolio performance."