London & Strategic Estates, a subsidiary of Sapcote Group, has bought the virtual freehold of 68-70 Wardour Street, W1, for £4.4m, reflecting a yield of 5%.
The deal includes an option to buy the freehold following the development of the upper parts of the building which is currently arranged over ground and basement levels.
The building is let to Spanish restaurant MasQMenos.
Work is underway to develop the upper parts of the building into four luxury flats.
James Millar of London & Strategic Estates said: “This property lies in the very heart of Soho and represented an unmissable opportunity to add to our central London leisure portfolio.
“When Coffer Corporate Leisure informed us there was an opportunity to acquire the property at a 5% yield we moved swiftly to facilitate a transaction.”
Michael Elliott acted for the private vendor.
