The Medical Dental Defence Union of Scotland has completed on the purchase of 50 Cannon Street, EC4, from Ferreiro properties.
The 26,115 sq ft office space in the City of London was bought by the healthcare company for £29.6m at an initial yield of 4.5%.
Tenants include United Overseas Bank, accountants RSM International, Aetna Global Benefits and gas company SCDM Energie.
This is the third purchase in London by MDDUS in the past year following the purchase of Hend House, WC2, for £21.3m and Bracton House, WC1, for £20.9m.
Richard Garner, partner and head of commercial at advisors Daniel Watney LLP, said: “Contrary to some reports, there remains a real lack of quality, investable stock in central London. What’s clear is that investors have retained confidence in the office market. With current economic uncertainties elsewhere in the world, appetite for the kind of long-term income streams offered by these kinds of assets remains key to many long-term investors.”
“In addition to this, Midtown is quickly emerging as an excellent opportunity area for institutions as it offers some great covenants, excellent infrastructure and some potential for value-add.”
Daniel Watney were advisors to MDDUS on the purchase, CBRE advised Ferreiro.
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