ING sews up Kajima’s Savile Row buy
Kajima has bought a Mayfair office building from ING Real Estate for £40m.
Kajima Europe, a subsidiary of the Japanese property giant, has bought the 31,691 sq ft Savile Row office, as revealed by Property Week last month (04.07.08).
The building, which includes a shop let to Kilgour, the luxury menswear designer, has been sold at a net initial yield of 5.67%.
The offices are let to three tenants, including asset manager Fortress, and the leases have an average unexpired term of nine years.
The building was redeveloped by Benchmark two years ago and bought earlier this year by ING for £51.4m, reflecting a net initial yield of 4.3%.
‘The purchase of 5 Savile Row represents the first acquisition for Kajima’s new UK investment strategy,’ said Michiya Uchida, president of Kajima Europe.
‘It is a flagship purchase in terms of location and asset quality and we are delighted to be able to secure the property for our portfolio at a price we believe represents excellent long term value.
‘Our aim is to create a diversified Central London office portfolio and this is an important step in achieving that strategy.’
The sale is the first out of a £200m central London office portfolio being sold by ING, as revealed by Property Week in May.