In a quiet week for large transactions, Harel’s sale of a former M16 building in London’s Victoria was the stand-out deal.
A high net-worth buyer, advised by Investra Capital which typically invests for Middle East clients, paid a price equating to 3.75% for 50 Broadway. The deal volume is thought to be a little over £100 mln.
Harel refurbished the1920s office to create 72,560 sq ft and let it to the UK government on a 20-year lease. Harel’s adviser, Savills, said the sale ‘demonstrated the resilience of global investor demand for top-quality office accommodation in established locations, particularly when coupled with the scarcity of 18.5 years of undoubted UK government income.’
Long income was the attraction for a second c€100 mln office deal this week. Values Real Estate bought newly-refurbished offices in Cologne, let to the city’s government and a medical tenant.
The largest transaction, at £300 mln, was another example of private equity investors buying into build-to-rent investments, in London.
We also track three offices coming to the market, and five managers raising capital for a range of different strategies.
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