Evans Randall has bought the freehold of 5 Canada Square in Canary Wharf from the Royal Bank of Scotland for £452m.
The Mayfair-based private investment bank and private equity company bought the14 storey 515,000 sq ft building, constructed in 2002, at an initial yield of around 4.4%.
The property is let to Credit Suisse International on a 25 year lease which expires in October 2027. Ten of the 14 floors are sublet to Bank of America and the annual rent is £19.7m which equates to around £38/sq ft. Evans Randall said the next rent review is in October and with rents of £47/sq ft being achieved in similar building the investment is highly reversionary.
Michael Evans, chairman and chief executive of Evans Randall, said: ‘As the single largest investment we have made in the UK real estate market, 5 Canada Square fits perfectly with our strategy of acquiring trophy buildings in Europe’s main financial centres at rentals that have significant reversionary value.’