West End of London Property Unit Trust (WELPUT), advised by Grafton Advisors and managed by Schroder Property, and Hermes Real Estate have exchanged contracts to sell The Point, Paddington Basin Unit Trust for GBP210.0 million.
The purchaser is Tishman Speyer.
WELPUT and Hermes Real Estate acquired the trust, the sole asset of which is the long leasehold interest in The Point, Paddington Basin, in 2004.
The building, which is situated directly opposite Paddington Station and adjacent to the Grand Union Canal, comprises 236,239 sq ft of offices developed in 2003 and designed by Farrells.
The trust has pursued a strategy of regearing and renegotiating leases culminating in the refurbishment and reletting of five floors where rents of up to GBP57.00 psf were achieved last year. Occupiers include Everything Everywhere, Cerner, A2Dominion Housing Group, CH2MHill United Kingdom and CB&I UK.
Nigel Kempner of Grafton Advisors, strategic property adviser to the trust, says: "WELPUT's investment into Paddington was timed to take advantage of rental growth which has been achieved as the area has matured into an established office location and the building is now fully modernised and leased. We have decided to capitalise on our good returns achieved at The Point whilst we continue to see interesting new opportunities across central London."
The vendors were represented by DTZ and Strutt & Parker. The purchaser was represented by GVA.