The West End of London Property Unit Trust (Welput), a closed-end fund managed by Schroder Property, has acquired the mixed-use building at 7/8 St Martins Place in London from Italian fund manager EstCapital for £41 mln (EUR 45.7 mln). The price represents a net initial yield of 5.9%. Welput was advised by Grafton Advisors.

The office section of the 48,000 sq ft (4,500 m2) building, which is located close toTrafalgar Square, is let to Redwood Publishing with four years to lease expiry. The property also includes two ground-level retail units which are currently let to the Post Office and Pret A Manger until 2017 and 2018, respectively.

The purchase represents Welput's first acquisition in 2011 and follows almost £200 mln of trades and new issues in Welput units over the last 18 months, supporting the ongoing demand by investors for exposure to the West End real estate market.

Nigel Kempner of Grafton Advisors said: 'The acquisition of this property, located in the heart of the West End and purchased direct from the Italian vendor, is in line with our strategy to acquire well-positioned assets that offer the potential for value enhancement through specialist asset management or redevelopment over the long term.'

EstCapital Group, controlled by Gianfranco Mossetto and Federico Tosato, is an independent asset management firm specialising in closed real estate funds. Schroder Property has more than EUR 10 bn of assets under management.