Falling Yields in London

Another test of the market is the yield being achieved on prime properties. That is where the offer by Invista Real Estate Management and Delancey of the 24,628 sq.metres Rolls Building, EC4 is so interesting. That is because they are seeking £320 million for the property on Fetter Lane for a yield of 4.5%, which is nearly back to the boom years. In contrast prime city yields are around 5.5%. Mike Edwards of CB Richard Ellis said: “It is a rare animal in the City/Midtown with a long lease to the government.” Meanwhile, Beltane Asset Management has bought the 3,499 sq.metres St Paul’s House, Warwick Lane from Grange Hotels, close to the Stock Exchange, for about £12 million. Beltane plans a complete refurbishment now that accountants Moore Stephens have relocated to 150 Aldersgate Street. Beltane has already bought Pellipar House, Cloak Lane at the end of June.

Beltane’s Jonathan Chenery said: “Two purchases in less than two months demonstrate our continued appetite for City property and our financial firepower and acumen to get deals done quickly.”

The London Commercial Property Register

The London Commercial Property Register is a leading UK business property publication from Martin Austen Publishing. The aim of the publication is to offer a simple and effective means of finding Offices Space in London, Serviced Offices in London and commercial property in London. You can also find the latest commercial property news for the London region.