Tue, 11/09/2018 - 16:56
The Fidelity UK Real Estate Fund has purchased a prime London office, Black Bull Yard, Farringdon, for GBP27.625 million from developer, Boultbee Brooks Real Estate (BBRE).
The purchase represents a net initial yield of 5.25 per cent, with good potential for rental growth through the medium and longer term. Current tenants include Momentum ABM Ltd, Cast Consult Limited and IBI Group Limited.
The 26,000 sq ft multi-let office building is set to benefit from major infrastructure improvements with Farringdon transport hub within walking distance where the Elizabeth Line will begin running in 2019.
Alison Puhar, Director, UK Real Estate at Fidelity International says: “Farringdon is establishing itself as a prime business location and with Crossrail in operation from 2019, the immediate area will continue to be a sought-after office destination. Black Bull Yard offers a unique blend of attractive office space in a modern building that retains many original architectural features and as a result provides excellent rental growth potential.”
The Fidelity UK Real Estate Fund is Fidelity’s flagship real estate fund aimed exclusively at institutional investors. The Fund invests solely in the UK. Since its inception in 2008, the Fund has outperformed the IPD UK PFI - All balanced Property Fund Index by 2.1 per cent p.a. and has a Gross Asset Value (GAV) of GBP570.1 million.
Clive Boultbee Brooks, Founder and Managing Director of BBRE, says: “Our development team’s focus on speculatively creating superior offices at Black Bull Yard allowed us to quickly attract several quality occupiers to the building. The sale to Fidelity ahead of our original business plan time frame returns a sizeable amount of equity to the business, which we will continue to reinvest into similar opportunities in London, the South East and other main UK regional office markets as and when they are identified.”
Fidelity UK Real Estate Fund was represented by Springer Nicolas in this deal. BBRE were advised by their retained portfolio investment adviser, Aurum Real Estate Partners and Colliers International.
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