European and UK institutions are shopping again for investments in the City of London.
They are investing in what the local agents are calling “drier stock”, valuing the long-term rental income of the property as a safe option. Stephen Bennet of Chapman Swaby said: “Softer yields at the shorter end of this spectrum represent good value relative to the active management stock, and should capture the majority of the performance provided by growing rents, without the risk of void costs.”
French property company Bail Investissement is the latest player in the City, acquiring 20 Farringdon Street from Danish pension fund KP Fonden for £20.25m, reflecting an initial yield of around 7%. The 3,884m2 building is occupied by KPMG.
AXA has purchased the DKB building at 24 King William Street from Nippon Life for £25m, reflecting around 7%.
The Welcome Trust has bought BfG’s 10 Aldersgate Street.
