Evans Randall buys Drapers Gardens for £242.5m

  Evans Randall has completed its purchase of Drapers Gardens in the City of London, EC2, for £242.5m, reflecting an initial yield of 5.2%.   As revealed by Estates Gazette on 26 June, the privately held UK investment banking and private equity group bought the building from a joint venture including Canary Wharf Group and a subsidiary of the Morgan Stanley Real Estate Funds.   The prime 292,500 sq ft development is let in its entirety to BlackRock Investment Management (UK) on a 25-year lease, with five-yearly reviews, at a gross annual rent of £13.5m.   Michael Evans, chairman of Evans Randall, said: “Drapers Gardens offers good long-term investment prospects, given the length of lease and the quality of both tenant and building.   “It sits well within our portfolio of trophy City properties and is part of an ongoing strategy of prime real estate acquisitions in London and major Continental cities.   “The lease benefits from a minimum uplift of 2.5% per annum for each of the first five years and a maximum uplift of 4.5% per annum.”   Euro Hypo Bank is providing debt for the acquisition.   CB Richard Ellis advised Evans Randall and on the sale of Drapers.   james.buckley@estatesgazette.com   To access all EGi news stories and commercial property data sign up for a free trial today, or visit the subscription options page to find out more.