BMO has sold Cassini House in St James’s Street, SW1, for £145.5m.
The prime, multi-let freehold office building is the second largest asset in BMO’s commercial property trust portfolio.
The sale price reflects a net initial yield of 3.2%, and is an increase of 11% over June’s valuation and 19% over the year-end valuation in December. The buyer’s identity has not been confirmed.
The sale was the culmination of a long-term business plan which involved a complete refurbishment, introduction of new tenants and re-gearing of leases.
BMO said the proceeds would go towards further share buy-backs as well as property acquisitions and capital expenditure opportunities in the existing portfolio where planning consent has been achieved.
Lead manager Richard Kirby said: “Following a competitive bidding process in which the company received several high-quality proposals, we are pleased to achieve a strong net initial yield of 3.2% for this trophy property and crystallise significant value for the portfolio.”
Compare this deal with other investment sales in St James’s >>
To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews
