DTZ Investment Management has bought Drury House, WC2, for £21m from Aberdeen Asset Management, reflecting a net initial yield of 5.34%.
The 35,751 sq ft multi-let building at 34-43 Russell Street generates an annual rental income of £1.2m, equating to £33 per sq ft.
Ben Blinston-Jones, director at DTZ, which advised the buyer, said: “With low passing rents, conservative capital value per sq ft and a potential change of use there are a number of ways to drive the performance of Drury House.”
Tim Hugill, director, West End investment at BNP Paribas Real Estate, which represented the vendor, added: “The property attracted very good interest from both institutions and private investors seeking multi-let investments in a market starved of stock.”
joanna.bourke@estatesgazette.com
