West End of London Property Unit Trust (WELPUT), advised by Grafton Advisors and managed by Schroder Property, is to buy the freehold of 101 New Cavendish Street at a price of GBP86.5m in a private transaction.
The vendor is Greycoat Central London Office Development Fund.
The property comprises a 101,000 sq ft building extended and refurbished by Greycoat in 2009 with ground floor retail, four floors of offices and residential above, sold off on long leases. The offices comprise modern air conditioned accommodation with raised floors and a number of energy saving features such as LED lighting and chilled beam air conditioning.
The average office passing rent is just GBP32.50 per sq ft. Occupiers include Tesco Stores, Post Office, University of Westminster and Dare.
Nigel Kempner of Grafton Advisors, strategic property adviser to WELPUT says: "This is an opportunity to invest in a building with low passing rents and potential for strong growth. The location is undergoing significant improvement led by major developments such as Fitzroy Place and also infrastructure and transport improvements, principally Cross Rail. The building will provide opportunities for future remodelling and improvement.”
Ian Mason of Schroder Property says: "This acquisition is an important part of our strategy for WELPUT enabling us to recycle cash from the recent Point and Carey Street disposals into a location that we have identified as having great potential for growth”
The vendors were represented by CBRE. The purchaser was represented by Allsop & Co and Strutt & Parker.