M&G Real Estate has purchased a city office building for GBP36.7 million on behalf of the M&G Property Portfolio managed by Fiona Rowley and Justin Upton.
The deal follows the purchase of Parc Trostre Retail Park in Llanelli for GBP156 million, taking the value of the fund’s new investments in August to close to GBP200 million.
The 61,000 sq ft Aliffe House is located in Aldgate E1 and is let to National Westminster Bank for a further seven years. It was acquired from a private investor for GBP36.7 million, reflecting a net initial yield of just under six per cent. Aldgate is currently undergoing a dramatic transformation with a number of residential and commercial led schemes improving the area and driving growth.
Rowley: “Aliffe House offers secure income and presents significant asset management opportunities in the short and medium term. This is particularly true given its position in the City, close to strong transport links and in an improving area. The income profile indicates that favourable and steady rental returns can be expected and, with significant regeneration underway nearby, the prospects for growth look attractive.”
GM Real Estate acted for M&G Real Estate on the purchase of Aliffe House with the vendor represented by Capital Real Estate Partners.