Aberdeen Standard Investments has bought two buildings at 95 and 97 Harley Street, W1, from Anglo Suisse Investments for £40m.
The assets were bought through The Standard Life Investments Long Lease Fund to tap into the growth of medical tourism in the UK.
The adjoining period buildings are spread over five floors and were recently refurbished to provide state-of-the-art medical facilities and cancer treatment.
Both buildings are let on long-term leases until 2040, guaranteed by HCA International, part of the world’s largest private hospital group.
Richard Marshall, SLILLF fund manager, said: “The transaction offers the long lease fund diversification into the healthcare sector and suits its strategy of acquiring prime assets in strong locations, let to good covenants on long leases.
“It also increases our exposure to alternative sources of income and new trends in real estate.
“As UK real estate moves into a mature phase of the cycle, long lease funds offer secure rental income with a substantial yield premium relative to UK government bonds.”
CBRE represented SLILLF and VanHan represented Anglo Suisse Investments.
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