Aberdeen has sold the largest asset in its £2.7bn UK property fund to help find the money to pay out shareholders wanting to cash in on their investments in the wake of the vote for Brexit.
Norges Bank Real Estate Management has bought the long leasehold interest in 355-361 Oxford Street for £124m.
The main tenant in the 59,000 square foot retail and office property is Boots – which has a four floor 31,5000 sq ft flagship store. It also has 14,500 sq ft of office space.
The sale also includes two buildings next door, with 13,000 of office, restaurant and retail space.
Norges, Norway’s central bank, said the property was unencumbered by debt and no financing was involved in the sale. 355-361 Oxford Street is held on a long leasehold from the City of London Corporation with an unexpired term of 139 years.
From Friday: Investors flock to fund redemption sales
From 11 July: Aberdeen to sell its largest UK property to pay redemptions
Aberdeen put the asset up for sale two weeks ago through CBRE for £145m – a 3% yield. It had bought the property for £76m in 2011 from private investors – a 4.27% yield.
Gerry Ferguson, Aberdeen’s head of UK property pooled funds, said: “Following a period of higher than normal redemptions from the fund after the EU referendum result and the suspension of other funds’ trading, the fund is now seeking to rebuild its liquidity position.
“A limited number of properties are being marketed and we will seek the highest prices achievable for our investors as is our normal practice.”
Aberdeen is also selling its second largest asset, office block 10 Hammersmith Grove, W6, through Strutt & Parker for £105m.
(Aberdeen’s largest assets before today’s sale)
