Burford has exchanged contracts for the sale of three leasehold office buildings – two in central London and one in Glasgow – for a combined total of £43.93m. The deals reflects an average yield of 7%.
The disposals reflect Burford’s strategy of selling investments which have undergone an intensive property management programme.
The investments include 60 year leasehold interest in St Martin’s Place, WC2, and a 120 year leasehold interest in North Row, W1, to NPI, for £26.93m reflecting a net initial yield of 6.18%.
Abbott Mead Vickers subsidiary Redwood Publishing has taken a prelet on the 3,228 sq m (34,750 sq ft) St Martin’s Place scheme – located on the corner of Trafalgar Square – and which is currently being refurbished. Redwood will be paying £322 per sq m (£30 per sq ft) on a 17 year lease.
NPI has also acquired Burford’s 120 year leasehold interest in a 2,196 sq m (23,640 sq ft) office building in North Row which is let to Hunter & Partners with 15 years remaining on the lease.
In Glasgow, Burford sold the 146 year leasehold interest in Exchange House to Alony Hetz for £17m. The 10,776 sq m (116,000 sq ft) office block is located on the corner of George Street and Montrose Street.
Exchange House is fully let to Glasgow City Council at £1.5m pa, equivalent to £138 per sq m (£12.88 per sq ft).
Franc Warwick advised Burford while King Sturge acted for NPI and Jones Lang Wootton advised Alony Hetz.
EGi News 13/03/98
