AEW Europe has acquired 65-68 Leadenhall Street, EC3, at an initial yield of 4.9% on behalf of its Europe Value Investors Fund.
The fund paid around £18m for the 31,173 sq ft office, which it intends to asset manage in order to increase the property’s net income.
The building is 99% let to shipping, insurance and legal companies.
AEW’s Europe Value Investors Fund operates a core plus and value add strategy focusing exclusively on office assets across Europe.
Carsten Czarnetzki, portfolio manager for AEW Europe Value Investors, said: “Our second UK acquisition for EVI confirms the high quality level of asset we are targeting for the fund. 65-68 Leadenhall Street will provide a stable income return with healthy scope for growth through the deployment of select, value add asset management initiatives, supported by an environment of returning confidence in financial markets and the City’s pivotal services sectors, as well as the opening of Crossrail in 2019.”
