Cushman & Wakefield Investors has bought the Mayfair offices of Sotheby’s auction house from fund manager Stenham Property.
The fund manager paid £11.3m – a yield of 6.1% – for the 10,500 sq ft office at 8 Bourdon Street, W1, which has a passing rent of £803,160pa.
The property, which Stenham bought in September last year for £8.25m (a yield of 6.3%), is let to Sotheby’s for its management and administrative offices on a lease expiring in November 2017.
This is the third transaction by Cushman & Wakefield Investors in the last 6 months involving a total £25m of equity investment. It is part of an ongoing programme to invest £80m on behalf of its clients.
Peter Balfour, Head of UK Investment Management, said: “Bourdon Street was a rare opportunity to acquire a prime Mayfair asset of this lot size, with secure income.
It fits our ongoing strategy of buying properties with strong underlying land value and attractive running yields on behalf of our clients , all long terms institutional investors.
“Despite a shortage of quality stock in the market we continue to source attractive assets for our clients, leveraging our team on the ground and their expertise in these markets.”
Stenham was advised by Crossland Otter Hunt; C&W represented CWI.
