Legal & General Property has completed the purchase of a Shoreditch office block let to tech darling Mind Candy for £63m – a 4.7% yield.
L&G has bought 15 Bonhill Street , EC2, from Resolution Property, as tipped by Estates Gazette last month.
The 110,200 sq ft property is arranged over the basement, ground and six upper floors. It is multi-let to six tenants including Mind Candy, Aston Carter and American Express, providing a weighted average unexpired lease term of 6.8 years.
One of the fastest-growing funds in its sector, the L&G UK Property Fund, launched in 2006, has grown from £100m to more than £1.3bn since inception.
Fund manager Matt Jarvis said: “This purchase is aligned with our strategy of increasing the fund’s weighting to growth-style assets.
“Characterised by a predominance of thriving tech and social media companies that are fuelling further demand for space, the area will benefit strongly from the opening of Crossrail, we believe.
“In addition, the property provides good-sized floorplates with excellent levels of natural light, and we believe that there is scope for refurbishment and further asset management opportunities over the medium term.”
Allsop advised Resolution; Cortex Partners acted for L&G.
nick.whitten@estatesgazette.com
