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.’

Bank of Scotland Corporate Banking provided debt. CBRE advised Evans Randall. Lazards advised RBS.

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