Lazari Investments is understood to be in advanced talks to acquire 50 Pall Mall, SW1, from Zenith Property Developments for around the asking price.
The historic property was put on the market in January with Cushman & Wakefield for offers in excess of £59.2m, reflecting a net initial yield of 4.25% and a low capital value of £1,678 per sq ft.
The original site of one of the world’s oldest gentlemen’s clubs, Boodle’s, located in the heart of St James’s, opposite the prestigious Oxford and Cambridge Club, the property was comprehensively refurbished in 2006, with further refurbishment in 2016/17 to provide 35,257 sq ft of offices.
Tenants at the property include investment manager Cohen & Steers, Edge Technology Group, aerospace and automotive supplier GKN, private equity fund manager Kerogen Capital and investment firm Northgate Capital.
The average WAULT is 6.75 years to expiry and 3.7 years to break, and the building has a total passing rent of £2.7m pa, reflecting a low average rent for the area of £80.53 per sq ft.
Zenith acquired the building in 2013 from Legal & General Assurance Society for £62.5m, according to the Land Registry.
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