Evans Randall buys Drapers Gardens in the City
Evans Randall has bought the recently-completed Drapers Gardens development in the City of London for £242.5m from Canary Wharf Group and Morgan Stanley Real Estate Funds.
The 292,500 sq ft scheme is let to BlackRock Investment Management on a 25-year lease, with five-yearly reviews, at a gross annual rent of £13.5m.
The price reflects an initial yield of 5.2%, excluding a deduction for rent free periods. Eurohypo is providing debt for the purchase. CB Richard Ellis advised Evans Randall.
Michael Evans, chairman of Evans Randall, said: “Drapers Gardens offers good long-term investment prospects, given the length of lease and the quality of both tenant and building.
“It sits well within our portfolio of trophy City properties and is part of an ongoing strategy of prime real estate acquisitions in London and major Continental cities.
“The lease benefits from a minimum uplift of 2.5% per annum for each of the first five years and a maximum uplift of 4.5% per annum. It is this certainty of rental growth that makes it particularly attractive to us”
The 13-storey development was completed in December 2009 and provides office floor plates from 12,000 sq ft to 25,000 sq ft.