McKay Securities has bought Evergreen Studios in Richmond for £14.75m.
The off-market deal for the 17,325 sq ft office building represented a 5.8% yield.
Sheen Lane Developments, which sold the building, has taken a two-year leaseback at £53 per sq ft and is seeking to sublet the space. The ground floor is already let.
McKay chief executive Simon Perkins said: “The two-year leaseback to the vendor provides us with an attractive yield and income from the outset. As the occupational market builds momentum, we expect to add value with further lettings from organisations looking for employee-friendly, high-quality space outside of central London with good environmental credentials.”
James Vivian, director in the office investment team at Savills, added: “There is a clear flight to quality among both occupiers and investors. Buildings that offer the highest quality accommodation in prime locations that boast ESG and sustainability credentials are top of the list. With a shortage of this type of stock, particularly in the South East, we can expect continued upwards pressure on rents and values, especially as we begin to incorporate the office back into our daily lives.”
CWM acted for the vendor; Savills acted for McKay.
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