UBS Asset Management has sold 1 New Fetter Lane, EC4, to a private Middle Eastern investor client of CBRE for £69m – a 4.47% yield.
UBS Triton Property Fund, which sold the property, recently negotiated a new lease on the 101,900 sq ft asset with Sullivan & Cromwell LLP for its European headquarters until 2026.
Middle Eastern capital has accounted for £1bn of transactions in London. Notable deals include Qatari Alduwaliya Asset Management’s purchase of BlackRock’s 10-12 Great Marlborough Street, W1, for £104m, and Dubai-based Easa Saleh Al Gurg Group’s purchase of The Peak, SW1, for £145m.
The New Fetter Lane sale reflects demand from overseas buyers for Midtown assets as the area undergoes development and infrastructural improvements that include the arrival of Crossrail into Farringdon in 2018.
Howard Meaney, head of global real estate – UK at UBS, said: “We acquired this asset at an early stage in Midtown’s growth cycle and the area has since seen significant regeneration and improved transport connections, making it an increasingly sought-after central London business destination.”
GG Capital, a newly formed real estate private equity firm set up by Karl Abawatt, has advised the private purchaser and will be managing the asset.
Abawatt said: “London is a core focus for our investment strategy and 1 New Fetter Lane presented a trophy headquarters building, well-let in an area from which we anticipate a high investment return following ongoing development and the completion of Crossrail in 2018.”
UBS Triton was advised by Tudor Toone.
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