Schroders has beaten a large pack of UK funds to buy the coveted University of Law campus in Bloomsbury, WC1.
A fund managed by Schroders was this week on the cusp of going under offer to buy the 0.8-acre freehold for more than £67m – 29% higher than the £51.7m asking price, which reflected a 5.25% yield.
Other parties vying for the campus included M&G Real Estate, Aviva Investors, Legal & General and Aberdeen Asset Management, as well as a number of developers.
Investors were attracted by the potential for a substantial increase in massing at the estate. At present it has a density of just 68%.
The site is occupied by four buildings, including 14 Store Street, 11-13 Ridgmount Street, 2 & 23 Ridgmount Place and 15-17 Ridgmount Street.
The university is proposing a 10-year leaseback of the buildings at a rent of £2.9m pa.
Bloomsbury is the largest of the eight University of Law campuses in the UK.
It currently comprises 40 classrooms, offices, mock courtrooms, a four-storey library and a television studio. JLL is advising the vendor.
All parties declined to comment.
