Orchard Street Investment Management has bought 6-10 St Andrew Street, EC4, from Prestbury Investments for £23.5m.
The payment to Nick Leslau’s company for the 45,893 sq ft office block reflects a 5.27% net initial yield. It was bought on behalf of St James’s Place property funds.
Tenants at the property include Carter-Ruck solicitors and Canon UK. Average rents are around £31 per sq ft. However, Barney Rowe, partner at Orchard, said there is potential to increase income.
He said: “Its location is in one of the most exciting areas of London. We are confident that we will see strong rental growth, particularly on the back of Crossrail, the potential new Goldman Sachs campus development, and New Street Square where rents have exceeded £55 per sq ft.”
BNP Paribas Real Estate acted for Orchard; Prestbury was advised by Franc Warwick.
The sale comes one month after Prestbury sold 55 Newman Street, W1 to occupier Freud Communications for around £21m –a 4.75% net initial yield.
joanna.bourke@estatesgazette.com
