Greater Manchester Pension Fund has sold 3-8 Whitehall Place, SW1, to Legal & General for £155.25m.
The deal reflects a yield of 3.5% and a capital value of £1,630 per sq ft.
The 95,000 sq ft office is currently fully let to the UK government, with the Department for Business, Energy and Industrial Strategy expected to move into the building following a refurbishment programme due to complete in 2023. The lease was signed until June 2029 at a rent of £5.8m per annum, reflecting an average rent of £61 per sq ft.
Neil Dovey, head of annuity transactions at L&G, said: “[The deal] further cements our wider relationship with the government and our existing portfolio of other government buildings in London as well as within all major regional cities – the majority of which we have funded as new developments.”
Philip Scott, fund manager at Schroders Capital, which advised the seller on the deal alongside CBRE, said: “With this sale, we have successfully completed the business plan for our new client, GMPF. We will now look to opportunistically reinvest the proceeds into higher-yielding assets offering the potential to deliver attractive returns from our active asset management.”
Cushman & Wakefield advised L&G.
To send feedback, e-mail evelina.grecenko@eg.co.uk or tweet @Gre_Eve or @EGPropertyNews
See which agents are doing the most deals in the London submarkets with our On-Demand Rankings >>
