News

Royal London sells two more offices from Pelican portfolio

News

Dominic Plaskota

21 March 2025

Offices

London

Royal London Asset Management has sold another two of its four-strong Pelican portfolio of offices in Greater London and the South East – and now looks set to retain the final site.

The company appointed BNP Paribas Real Estate to bring the portfolio to market last summer, inviting offers of around £39.1m at a net initial yield of 10.25% and a capital value of £177 per sq ft.

Earlier this month a UK private investor acquired two of the offices for a combined £13.3m.

The buyer paid £7.7m for the 57,246 sq ft Capital Court in Uxbridge, which reflected a capital value of £134 per sq ft, and £5.6m for the 51,729 sq ft Greenwood House in Chelmsford, at a capital value of £108 per sq ft.

At the prices the assets were originally marketed for – £7.6m and £6m – the yields would have stood at 17.6% and 17.4% respectively, since both have vacancy levels of around 60%.

Capital Court was marketed as an opportunity to redevelop the building with the potential for alternative uses as residential or self-storage when the block becomes vacant in 2030.

Greenwood House was marketed as a chance to regear current leases with Kennedys Law on the third and part-fourth floors of the building and progress regear discussions with Allianz, another tenant in the building.

The other asset sold from the portfolio was Sovereign House, a 74,387 sq ft office in Romford built in the 1980s. It was acquired by another UK private investor for £10.8m at the end of last year, which reflects a net initial yield of 11.9%. The asset was originally brought to market for £12.8m.

The last asset brought to market as part of the portfolio was the 37,022 sq ft One Gloucester Place in Brighton, originally marketed for roughly £12.6m. Royal London has, however, now decided to retain the office block.

Mark Evans, head of property at Royal London Asset Management, told Estates Gazette the sales were part of the group’s “strategy to invest in best-in-class assets that attract and retain occupiers while creating positive social and environmental impacts.”

He added: “This is reflected in our £8.5bn portfolio across the UK and in the recent acquisition of Atlantic House, a prime central London commercial asset.”

BNP Paribas declined to comment.

Send feedback to Dominic Plaskota

Royal London Asset Management has sold another two of its four-strong Pelican portfolio of offices in Greater London and the South East – and now looks set to retain the final site. The company appointed BNP Paribas Real Estate to bring the portfolio to market last summer, inviting offers of around £39.1m at a net initial yield of 10.25% and a capital value of £177 per sq ft. Earlier this month a UK private investor acquired two of the offices for a combined £13.3m. The buyer paid £7.7m for the 57,246 sq ft Capital Court in Uxbridge, which reflected a capital value of £134 per sq ft, and £5.6m for the 51,729 sq ft Greenwood House in Chelmsford, at a capital value of £108 per sq ft. At the prices the assets were originally marketed for – £7.6m and £6m – the yields would have stood at 17.6% and 17.4% respectively, since both have vacancy levels of around 60%. Capital Court was marketed as an opportunity to redevelop the building with the potential for alternative uses as residential or self-storage when the block becomes vacant in 2030. Greenwood House was marketed as a chance to regear current leases with Kennedys Law on the third and part-fourth floors of the building and progress regear discussions with Allianz, another tenant in the building. The other asset sold from the portfolio was Sovereign House, a 74,387 sq ft office in Romford built in the 1980s. It was acquired by another UK private investor for £10.8m at the end of last year, which reflects a net initial yield of 11.9%. The asset was originally brought to market for £12.8m. The last asset brought to market as part of the portfolio was the 37,022 sq ft One Gloucester Place in Brighton, originally marketed for roughly £12.6m. Royal London has, however, now decided to retain the office block. Mark Evans, head of property at Royal London Asset Management, told Estates Gazette the sales were part of the group’s “strategy to invest in best-in-class assets that attract and retain occupiers while creating positive social and environmental impacts.” He added: “This is reflected in our £8.5bn portfolio across the UK and in the recent acquisition of Atlantic House, a prime central London commercial asset.” BNP Paribas declined to comment.