Scottish Widows Investment Partnership has bought the City headquarters of GM Real Estate for £23m, reflecting a net initial yield of 4.7%.
The 28,600 sq ft 6-8 Tokenhouse Yard, EC2, is one of a pair of City buildings being sold by Grainmarket as it looks to crystalise profits from its 800,000 sq ft London portfolio.
Tokenhouse is multilet to tenants including Cenkos Securities, which occupies almost half the office space, Cogent Partners, Gianni Origoni Grippo & Partners, Brazilian bank BNDES and City agent GMRE.
The building has a weighted unexpired lease term of a little less than two years. The rent roll is around £1.2m with average rents in the building around £40 per sq ft. More recent deals have been at rents of around £55 per sq ft, suggesting ample opportunity to increase rents at upcoming reviews.
Grainmarket is also close to selling 29-30 Cornhill, EC3, through Michael Elliot for more than £20m.
The Grade II* listed period building is believed to be under offer to an overseas investor, having attracted bids from five parties for prices reflecting yields in the region of 4.5%.
GMRE acted for Grainmarket on Tokenhouse; CBRE advised SWIP.
jack.sidders@estatesgazette.com
