Highly prominent freehold asset within 200 metres of the Bank of England sold.
A London & Oxford fund has acquired the shares in First King Properties Limited which holds the freehold of 75 King William Street, London EC4 from Singapore’s Keppel Land. The purchase represents a net initial yield of 4.59 per cent and a capital value of £997 per sq ft.
The multi-let office building comprises 128,132 sq ft of office and retail accommodation and is let to tenants including National Bank of Greece, Danske Bank, Landmark, CMA CGM and SThree off a passing rent of only £46.60 per sq ft overall. Originally developed in 1989, the building is located in the heart of the City of London being only 200 metres from the Bank of England, and directly opposite the new Bank station development.
Dylan Tudor-Williams, Head of Real Estate at London & Oxford Group said: “The acquisition of 75 King William Street has further increased our City portfolio with another high-quality asset. This investment forms part of our continued acquisition programme into prime real estate and underscores our confidence in the long-term strength of the market.”
James Nicholls, Director, City Capital Markets, Colliers, who advised London & Oxford, said: “Multi-let buildings of this profile in the heart City of London rarely come to the market so we were pleased to have advised London & Oxford on securing this asset in an off-market transaction.”
“75 King William Street offers a compelling business plan to generate future value in a prime location given its multi-let profile and low office rents. The building already benefits from exceptional transport links and local amenities, however with the opening of Crossrail and the major upgrades to Bank Station due to complete in 2021, the future is looking very positive for 75 King William Street.”
Savills acted for Keppel Land.