Italian fund manager Estcapital has clinched the sale of a mixed-use scheme at 7/8 St Martins Place in London to West End of London Property Unit Trust (WELPUT), a closed-end fund managed by Schroders.

The transaction price of £41 mln (EUR 45 mln) represents a substantial increase on the price of £33 mln Estcapital paid for the building back in 2009. The deal reflects a net yield of 5.75%, with the owner realising an IRR on investment of 24%.

The complex, which was owned by the fund manager's RealEmerging vehicle, provides 4,500 m2 of office space in the vicinity of Trafalgar Square. It is rented to Redwood Publishing, with a remaining lease term of four years. On the ground floor, the property features two retail units let to the local Post Office as well as Pret A Manger.

Cushman & Wakefield advised EstCapital, Strutt and Parker acted for Welput.

Estcapital is an Italian independent fund manager based in Padoa. It has roughly EUR 1.5 bn of assets under management across 20 funds. Founded by Gianfranco Mossetto and Federico Tosato in 2003, the company focuses on commercial real estate in Italy and in the UK.