An opportunity fund set up to buy property from distressed sellers has made its first West End buy.

Evans Randall, the UK investment banking and private equity group has bought 10 Old Burlington Street from Standard Life for £48.5m reflecting a net initial yield of 5.7%.

The building was bought through the company’s £1bn opportunity fund which was launched in January.

The 40,500 sq ft Mayfair office building is currently let to tenants such as Goodman, MKM Longboat Capital Advisors, Davidson Kempner European Partners and Nevsky Capital and brings in a rent of approximately £2.75m.

High quality properties

‘As owners seek to liquidate their assets we real take the opportunity to acquire high quality properties at realistic yields,’ said Michael Evans, chief executive of Evans Randall. ‘The fund will remain predominantly UK focussed as we believe that is where the best investments are.’

The company has also confirmed the purchase of Commerzbank’s headquarters at 60 Gracechurch Street from New Star Asset management for £127.5m, as revealed by Property Week (18.02.08).

The 120,000 sq ft office building, bought by New Star at the end of 2006 for £146m, was bought at a net initial yield of 5.7%.

The buildings are the second and third bought by the opportunity fund. In early January Evans Randall announced it had bought Condor House, St Paul’s Churchyard, for £115m.