Swedish shipping giant Stena has made its first acquisition in the UK.
The group’s property division, Stena Realty, has bought a 100,000 sq ft office block on the eastern fringe of the City from Khalid Affara’s Arab Investments.
It has paid around £31m – a 7.8% yield – for 100 Leman Street, E1, in what is expected to be the first of a number of acquisitions for Stena in the capital.
The group will initially target the central London office market for its expansion in the UK.
Stena Realty managing director Ronald Visscher said: “We are very happy to have succeeded in our first London office investment after following the market for some time. We feel confident about the success of the building and area.”
He added: “This opportunity matches our requirements to learn about the London market in various aspects, which we will use for our further expansion plans here.”
The group paid cash for the building, which is entirely let to US-based internet service provider Level 3 Communications, but will refinance all acquisitions it makes.
Stena owns about 21m sq ft of property worldwide. Most of its assets are residential properties in Sweden. It also owns commercial properties in the Netherlands, France, Germany, Luxembourg, Hungary, the US and Asia.
The firm, best known for its ferries, turned over £4bn in the year ended 31 December 2010.
Savills and Hanlon Bennett acted for Arab Investments; Trinova Real Estate is advising Stena.
samantha.mcclary@estatesgazette.com
