Qatar’s Alduwaliya Asset Management has bought a South Bank office block from the M&G Property Portfolio for around £150m.
Riverside House, SE1, the London HQ of communications regulator Ofcom, has been sold in an off-market deal reflecting a net initial yield of circa 4.5%.
M&G Property Portfolio acquired the building from IVG ImmobilienFonds, the fund management division of German property company IVG, in 2014 for £122m – a net initial yield of 5.7%.
Ofcom is the majority occupier, with 120,000 sq ft of office space in the 170,000 sq ft building. Other occupiers include software consultancy Brady, regulator the College of Policy and architecture firm Broadway Malyan.
The deal follows Alduwaliya’s purchase of two West End offices last year – 10 Great Marlborough Street, W1, which it acquired from Blackrock for £104m; and 13 Great Marlborough Street, which it bought from UK Commercial Property Trust for £30.5m.
Knight Frank advised Alduwaliya; GM Real Estate represented M&G.
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