Marylebone Warwick Balfour Group has forward sold the leisure element of its 92,900m2 mixed-use joint venture development at West India Quay next to Canary Wharf in London. Schroder Exempt Property Unit Trust and the third MWB Leisure Fund paid £34m for the Docklands scheme.
Currently being developed by MWB and Manhattan Loft Corporation, the leisure part comprises 13,935m2 and the price reflects a net initial yield of 6.25%. It is expected to generate annual income of around £2.25m. Rental income of £1.77m has already been secured from a variety of tenants including Virgin Cinemas – recently acquired by French group UGC – and bar and restaurant groups that have taken a total of 5,574m2.
William Hill, managing director of Schroder Property Investment Management, said: “This acquisition takes Schroder Exempt’s investment in London over the last 18 months to almost £200m.”
