The Aviva Investors Property Trust has completed the purchase of 21 New Street, an office property situated within 100 metres of Liverpool Street Station, London.
The building, occupied by the banking, financial services and insurance sectors, in addition to the City of London Police, was purchased for close to GBP30m, reflecting a net annual yield of over five per cent.
The location and surrounding areas is expected to undergo further improvement with the opening of the Crossrail station at Liverpool Street, projected to be operational in 2018. This will be the only station in London to provide direct services to both Heathrow and Stansted.
The nearby Spitalfields Market complex and Broadgate have also recently undergone refurbishment and redevelopment, with significant investment also expected in the adjacent Devonshire Square estate over the coming years.
Philip Nell, manager of the Aviva Investors Property Trust, says: “21 New Street is situated in a popular location and is a property in which we feel can attract significant rental and capital growth in the future.
“Although the fund is currently strategically underweight to ‘growth implicit’ central London assets, we feel this property offers a unique opportunity to add significant value through refurbishment, extension and repositioning of the asset based on our medium term outlook for risk adjusted returns in this sub-sector.”