A private European buyer has bought WELPUT’s Schroders-managed Stratton House, W1, for £166m.
The price paid for the 86,040 sq ft building, which is fully let to tenants including Manchester United Football Club and Langan’s Brasserie, reflects a 4.2% net initial yield and equates to £1,670 per sq ft.
Nigel Kempner, founder of Grafton Advisors and head of fund management at Quintain, which advised WELPUT, said: “We wanted to take advantage of the strong international investment market for prime West End investments. We now look forward to using our expertise to reinvest in opportunities.”
He added that the bulk of bids, which when added together totalled £2bn, came from overseas investors.
5 Stratton Street was purchased by WELPUT in 2005 from Scottish Widows and ND Properties for £82m, reflecting a net initial yield of 4.90%.
It was put on the market in January with a £170m price tag.
DTZ and Strutt & Parker advised the vendor; Savills represented the buyer.
joanna.bourke@estatesgazette.com
