BMO sells Cassini House for GBP145.5m
BMO Commercial Property Trust Limited has sold Cassini House located in St James’, London for a total consideration of GBP145.5 million.
The property is a prime multi-let freehold office building and represents the second largest holding in the portfolio.
The sale price reflects a substantial increase of 11 per cent over the last external valuation of 30 June 2021 and 19 per cent over the year-end valuation of 31 December 2020. The disposal represents the culmination of a long-term business plan which involved a complete refurbishment, introduction of new tenants and re-gearing of leases.
This disposal is entirely consistent with the strategy of rebalancing the portfolio and the Company will carefully consider the use of the proceeds in the best interests of all shareholders. This includes further share buy-backs as well as property acquisitions and capital expenditure opportunities in the existing portfolio where planning consent has been achieved. The Company’s existing share buy-back programme is ongoing.
Richard Kirby, lead manager, says: “Following a competitive bidding process in which the Company received several high-quality proposals, we are pleased to achieve a strong net initial yield1 of 3.2 per cent for this trophy property and crystallise significant value for the portfolio. This disposal will allow the Company to promptly recycle capital in a strong pipeline and adjust sector weightings. We look forward to providing a further update of the use of proceeds in due course.”