AEW Europe’s European Property Investors Special Opportunities (EPISO) Fund has bought Wimbledon Bridge House in Wimbledon.
As tipped in Property Week (31.07.09) the fund has bought the 130,000 sq ft building in south west London from Prupim.
It paid £40m at a net initial yield of 10%. T
The building is entirely let to six office tenants including Wandsworth Primary Care Trust and four retailers including WH Smith and Next.
It has a weighted average remaining lease term on the property of six years.
This is the sixth purchase in the UK by the EPISO value-added fund, which has now made total investments of €600m.
The fund was closed in 2008 with €788m of equity, providing approximately €2bn of spending power.
Rob Reiskin, head of investments AEW Europe said: ‘We feel very comfortable with the pricing on this transaction given its high initial yield and significant discount to replacement cost.’
Ric Lewis, chief executive officer of Tristan Capital Partners, the EPISO fund portfolio manager and adviser, said: ‘The historically low pricing in the UK, combined with our access to equity and senior debt, means we are well placed to take advantage of the large number of attractive opportunities in this market.
‘We will continue to look for further strategic investments in the UK to meet the return targets of our funds.’
AEW Europe is working with Bellhouse Joseph to implement the asset management strategy for Wimbledon Bridge House.
Strutt & Parker advised AEW Europe. Knigh Frank advised Prupim.