Japanese firm Mitsubishi Estate Company has completed its £90m purchase of government-let Clive House, SW1 , as tipped by Estates Gazette last week .
The company said the purchase of 86,500 sq ft 70 Petty France, which reflected a 4.25% yield, is part of its mid-term growth plan to double its UK portfolio by 2020.
Clive House has fixed annual increases of 2.5%. It generates £4m pa, and is let to the secretary of state for transport, local government and the regions until 2027.
MEC’s UK managing director, Hiroyuki Arimura, said: “This acquisition has an excellent covenant and fits in very well with our existing portfolio in terms of income profile and lease length. It offers stable income with fixed uplifts and a longer term redevelopment opportunity.”
Colliers International advised MEC; Knight Frank acted for the vendor Real IS.
