Mountgrange Real Estate Opportunity Fund has sold the Warwick Building in Kensington Village, W14 to fund manager Cordea Savills for £40.1m.
The fund manager bought the building, in a deal which reflects a net initial yield of 5.2%, on behalf of The Bishopsgate Long Term Property Fund Unit Trust.
The Warwick Building forms part of the 320,000 sq ft Kensington Village office campus and was the former Whiteley depository building, which was extensively refurbished in 2000.
The building is let to the Publicis Groupe, based on a full repairing and insuring lease with about eight years unexpired. The passing rent is £2.2m pa equating to £26.64 per sq ft.
Rob West, partner at Mountgrange, said: “The sale was an opportunity for investors in our first fund to take advantage of the resurgence in West London office rents and the work we have done towards obtaining consent for a residential extension.”
Patrick Lowther of Cordea Savills said: “With prime rents in Hammersmith close to £50 per sq ft, the Warwick Building is well placed to benefit from the continuing supply constraints and what to many occupiers is seen as an increasingly unaffordable West End Office Market.”
GN2 advised Mountgrange on the sale.
