Quadrant, acting on behalf of a Singaporean client, has bought the 47,000 sq ft 6 Gracechurch Street, EC3, from Universities Superannuation Scheme.
The office building was put up for sale by USS earlier this year for £37.7m – a 6.5% yield. The long leasehold property has a WAULT of 7.8 years and is fully let to tenants including BT, Gaws of London and Partner Reinsurance.
The asset will used to seed an expansion plan for the new Singaporean client, which has given Quadrant a mandate to build a portfolio of high-quality office buildings in central London.
Quadrant said the Singaporean investor was “actively seeking investment opportunities for the portfolio at what they believe is an attractive entry point for investing in the London office market”.
Christopher Daniel, founding partner at Quadrant said: “6 Gracechurch Street is already fully let to high-quality tenants following its recent refurbishment, clearly showing there is robust demand for offices in the City of London able to meet modern occupier requirements.
“We are excited to be embarking on building this portfolio at a time when we have likely reached a point in the cycle where valuations, including those for some of the city’s best located office assets, have reached a level that is providing investment opportunities that may not be seen again for considerable time. We will use our market knowledge, development and asset management expertise to unearth the best opportunities and drive superior risk-adjusted returns.”
Savills advised Quadrant on the purchase; Cushman & Wakefield acted for USS.
Image @ Ben Thompson Photography
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