Mitsubishi Estate Company has completed the purchase of government-let 1-19 Victoria Street, SW1, for circa £180m.
The price paid by the Japanese company for the 10-storey 335,424 sq ft building, reflects a 4.8% yield. It went under offer for the asset in November 2012.
The property, which was purchased from D2 Private and Stenham Property, houses the Department for Business, Innovation and Skills and is let to the government until 2021 with an annual income of just under £9.2m.
Hiroyuki Arimura, MEC UK managing director, said: “It is a very central location. It is also an area that is currently seeing major redevelopment and attracting an array of new occupiers. For these reasons, we believe the building is an excellent investment with longer-term redevelopment potential.”
Savills advised MEC; CBRE represented the vendors.
joanna.bourke@estatesgazette.com
