Dubai-based investor SRG Holding has bought the global headquarters of Spice girl turned designer Victoria Beckham at 202 Hammersmith Road, W6, for £16.8m.
The transaction represents a net initial yield of 4.42% and a capital value of £1,140 per sq ft.
The property, which was refurbished in 2017, provides 14,746 sq ft of space behind a period façade and Victoria Beckham Ltd pays an annual rent of £794,471, which is subject to an upwards-only review in 2022.
Jonathan O’Regan, director in the central London investment team at Savills, which advised the vendor, said: “The combination of secure, long-dated income with exceptional grade-A office space resulted in a record capital value per sq ft for Hammersmith.
Ed Bradley, head of West End investment at CBRE, which advised SRG Holding, added: “202 Hammersmith Road will be a great addition to their UK portfolio, providing them with long-term income in a high quality freehold building.”
This year so far the total transaction volume by Middle Eastern investors has been £1.26bn with a further £127m of deals under offer, expected to exchange, or complete by the end of the year, according to Savills.
“There has been a notable uptick in transactional activity by Middle Eastern investors in London in 2018 when compared to the 18 months that immediately followed the EU referendum. These investors, many of whom are active in the UK and mainland Europe, are attracted to London’s liquidity and comparative value, and the resilience London’s investment market continues to demonstrate,” said Hassan Farran, director in the cross-border investment team at Savills.
“Defying an expectation that London could suffer in light of Brexit, we have seen record levels of investment in the past two years, with both domestic and international investors active in the market. The number of deals done with Middle Eastern investors in 2018 is reflective of these attractive market conditions combined with the right assets being available at the perceived ‘right’ price.”
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