Morgan Stanley has sold the new 125-year leasehold interest on its private Mayfair bank to a European investor for £11.8m – a 3% yield.
The financial services firm appointed Cushman & Wakefield earlier this year to seek offers in excess of £10.9m on 9 Upper Grosvenor Street, W1.
The Grade II listed Georgian townhouse is held on a long leasehold from the Grosvenor Estate, geared to 10% of the income received on the property.
The asset, which comprises 4,543 sq ft over six storeys, is entirely let to Morgan Stanley on a 15-year lease at a rent of £4.2m pa, or £92.50 per sq ft.
Cushman & Wakefield forecasts average prime West End rents to reach £135 per sq ft by the end of 2017, with availability of grade-A stock in Mayfair now at 1.2%.
JLL acted for the purchaser.
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