Equitable Life and Frogmore Investments’ Apsley Property Limited Partnership has sold two of its office buildings for a total of £35.49m.
HSBC Pension Trust paid £23.9m for the freehold interest in Ashby House, Bridge Street in Staines. The 72,549 sq ft (6,739 sq m) building is let to Scottish & Newcastle on a 25-year lease, with more than 13 years unexpired. The property has a passing rent of £1.86m pa, equivalent to a yield of 7.36%.
CGU Staff Pension Fund paid £11.59m for the second property, Clarendon House, 114-118 George Street in Edinburgh. The 3,127.4 sq m (34,632 sq ft) building is located in Edinburgh’s CBD and is let to the Secretary of State for the Environment for a period of 25 years, from 25 April 1996 with a 15-year break option. The net initial yield is 4.43% on a passing rent of £542,575 pa.
Equitable Life and Frogmore formed Apsley Property in March of last year to purchase a portfolio of 15 properties from Equitable for £106.5m. The partnership has already sold Direct Line House in Leeds, Beatrice House in Watford and an office building in Exeter from the portfolio.
Frogmore director Joe Malvisi commented: “As the partnership has now realised over £60m from sales we are actively seeking new investments.”
Holley Blake and Kings Sturge represented Apsley, Jones Lang LaSalle represented HSBC and Hamptons International Commercial represented CGU.
EGi News 04/10/00
