Compco Holdings has bought an 19th century 102,000 sq ft (9,476 sq m) former Railway ticketing centre in Euston.
It has paid Allied Dunbar Assurance around £24m for Carriage Row, 163-203 Eversholt Street, NW1.
The sale price represents an initial yield of 8.3%, which is believed to rise to around 10%.
It is situated adjacent to the Euston Station tracks over which Railtrack plans to developed a 1.5m sq ft scheme.
Nigel Ross, joint chief executive of Compco Holdings, told EGi: “This is a sensible deal in a cautious market. We believe the area will become increasingly attractive to occupiers.
“This purchase ties in with Compco’s nearby Camden holdings and our philosophy to buy now only at sensible capital value levels.
“The property offers excellent office space, and 65% of the income is secured for a term of five years or more from good-quality tenants.”
Michael Elliott acted for Allied Dunbar Assurance.
EGi News 16/08/02
