Soor Capital, a private Middle Eastern investor, has bought 23-26 Austin Friars, EC2, for £39m from an undisclosed seller.
It is Soor Capital’s first investment in the UK, and the deal reflected a net initial yield of 5%, equating to £700 per sq ft.
The seven-storey building totals approximately 55,850 sq ft and is let in its entirety to Avanta Serviced Office Group, part of IWG, for a further 14 years.
Abdulaziz Alduweesh, partner at Soor Capital, said: “We are pleased to announce our entry into the UK property market through the successful acquisition of 23-26 Austin Friars. This acquisition fits our investment criteria as we continue to look for real estate opportunities that achieve total return through long-term current income and strong property fundamentals.”
Commenting on Middle Eastern investor appetite for London, Hassan Farran, director in the cross-border investment team at Savills, which acted for Soor Capital on this deal, said: “There has been a notable uptick in transactional activity by Middle Eastern investors in London in 2018 when compared with the 18 months that immediately followed the EU referendum.
“These investors, many of whom are active in the UK and mainland Europe, are attracted to London’s liquidity and comparative value, and the resilience London’s investment market continues to demonstrate.”
JLL advised the sellers.
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