Scottish Widows Investment Partnership has completed the purchase of the Harlequin Building at 65 Southwark Street, SE1 from Rockspring for £40m, a 5.07% yield.
SWIP acquired the building on behalf of the HIFML UK Property Fund in an off-market deal.
The Harlequin Building comprises 50,000 sq ft of grade A office and retail space let to Zoopla, Marris, World Trade and Travel Centre, Metropress and Itsu.
The first floor is vacant.
A substantial refurbishment of the building completed in Q4 2012, following Rockspring’s February 2010 purchase.
Richard Bains, Rockspring UK Value Fund Manager said: “Today’s announcement marks the successful conclusion of the regeneration, leasing and sale of the Harlequin Building. This project has generated exceptional returns for the fund and endorses our confidence in developing into the Central London office market.”
Geoff Hepburn, Fund Manager in SWIP’s Real Estate team added: “The South Bank occupational market is moving at a tremendous pace and we expect this asset to return excellent rental growth and performance for our investors as the location continues to mature. This deal was done off-market in only seven days, demonstrating SWIP’s exceptional capabilities to deliver in a very challenging and competitive marketplace.”
Rockspring was advised by JLL; SWIP was represented by H2SO and Forsters.
jack.sidders@estatesgazette.com
