SWIP Property Trust (SWIPPT), managed by Aberdeen Asset Management, have purchased the long leasehold interest of 3-8 Whitehall Place for £65.5 million, reflecting a net initial yield of 4.29 per cent
The property is let to DECC until 2029, with a break in 2021, producing a rent of £3.6 million per annum. There is a rent review in December 2016 with a guaranteed rental uplift at the following review in 2019, to a minimum of £4.8 million per annum. The long leasehold has 115-years unexpired and offers various asset management initiatives.
James McLean, Fund Manager, Aberdeen Asset Management commented ‘SWIPPT are delighted to have acquired this secure government let investment in the prestigious area of Whitehall in London’s West End.  The Grade A office building was substantially refurbished in 2004 and has excellent rental growth prospects off an overall passing rent of £38psf’.
Colliers International advised Aberdeen Asset Management; CBRE represented the vendor.