DTZ Investment Management has made its first purchase for the Strathclyde County Council Pension Fund.
The fund manager has bought the 40,000 sq ft Bankside Centre office block on Southwark Bridge Road, SE1, from Harry Handelsman’s Manhattan Loft Corporation.
DTZ IM paid £18.7m for the building, reflecting a net initial yield of 7.61%.
Bankside Central, developed by Manhattan Loft in 2001, is entirely occupied by brand consultancy Futurebrand, with a guarantee from its parent company Interpublic Group for 15 years to 2016. Futurebrand pays a rent of £1.5m pa.
Tim Warren, partner at Cluttons, which acted for DTZ IM, said: “We believe there will be significant market recovery around Bankside as major developments, including the Shard and the commercial and cultural zones around the Tate Modern, are completed.”
Office vacancy rates in Southbank are around 5%. Prime rental values for well-located, new-build offices close to the River Thames range from £37.50 per sq ft to £45 per sq ft.
Kingly Partners advised the vendor.
