The second phase of Burfords Mayfair Place scheme in W1 has been sold for more than £85.5m, a yield of just 5.65%.
The deal for the 70,000 sq ft (6,500 sq m) 50 Stratton Street scheme was rushed through by buyer BP Pension Fund at 2.30am on Thursday morning to beat the Chancellors clampdown on stamp duty savings schemes.
The Stratton Street building will be Lazard’s new European headquarters.
The investment bank last month agreed a 20-year lease at £75 per sq ft (£807 per sq m) for the scheme, which is due to be completed later this month.
As long-term investors, we are delighted to have bought a modern freehold in Mayfair let to an excellent covenant for 20 years.”
It is expected that Burford will now seek to sell the remaining Mayfair Place asset, the 160,000 sq ft (14,900 sq m) first phase in Berkeley Street.
Franc Warwick acted for Burford and CB Hillier Parker advised BP Pension Fund.
See Saturday’s Estates Gazette for the full version of this story.
EGi News 12/07/02
