Orchard Street makes first City purchase

  Orchard Street Investment Management, the UK commercial property investment manager, has bought 60 Cannon Street, EC4, for £21.38m from ING Real Estate.   The office block with retail on the ground floor was bought from Orchard’s Special Situations Fund in a deal reflecting an initial yield of 8.23%.   The offices are let to MWB Business Exchange for a further 12 years at a rent of £41 per sq ft. The retailers are Thomas Pink, Prêt A Manger and Eat.   This is the fourth acquisition this year for the Special Situations Fund and its first investment in the central London office market. This brings the total invested this year to £92m.   Chris Bartram, chairman of Orchard Street, said: “We are delighted to add 60 Cannon Street to the portfolio of the Orchard Street UK Special Situations Fund.   “This is our first transaction in the City and we are confident that this opportunity provides good diversification and exposure to a market that we forecast will recover strongly.   “60 Cannon Street is a good-quality, modern office building in an excellent location close to St Paul’s. The surrounding area also contains first class retail and other facilities, as well as being convenient for important rail and tube stations. . “The fund has a capacity of £300m and expects to continue its investment programme throughout the remainder of 2009 and into 2010.”   BNP Paribas Real Estate advised Orchard Street.   paul.norman@egi.co.uk