M&G sells West End property following redevelopment
The M&G Property Portfolio has sold the recently redeveloped 1-5 Poland Street, London W1.
The building was purchased through a competitive bidding process realising GBP30.4m and reflecting a net initial yield of 4.84 per cent.
The fund is managed by Fiona Rowley and Justin Upton of Prupim, the real estate investment management arm of M&G Investments.
The fund undertook the redevelopment last year, creating high quality contemporary accommodation over six floors in London’s West End. 1-5 Poland Street spans 27,016 sq ft, providing nearly 24,000 sq ft of office space and just over 3,000 sq ft for retail and ancillary storage. The building was purchased by Orchard Street Asset Management, on behalf of St James’ Place Fund.
Michael Wood, director, investment management at Prupim, says: “Following the successful major refurbishment and letting of Poland Street by the fund last year, we decided to take advantage of the strong West End investor demand and marketed the building prior to Christmas. We had strong interest from both UK and overseas investors and are pleased to have now completed the sale."
In August 2012, the fund let the property in its entirety to Williams Lea, the business process outsourcing organisation, for a term of 15 years with a tenant only break option after 10 years.
The M&G Property Portfolio was advised by H2SO and Orchard Street Asset Management was advised by CBRE.