Halladale, the AIM-listed UK property investment and development company, has bought the Capita London office portfolio from Scarborough Property for £72m

The purchase price reflects a net initial yield of 5.56%.

The portfolio, which was acquired via a special purpose joint venture vehicle between Halladale and co-investment partner Tyburn Lane Private Equity, consists of five buildings totalling 144,597 sq ft (13,433 sq m) situated throughout central London.

Tenants include Mitchells & Butlers, Biachem, Trafficlink, Easy Group, Max Fordham & Partners and Trinifold Management.

David Lockhart, chief executive of Halladale, said: ‘This acquisition of the Capita portfolio continues Halladale’s re-alignment of its asset management and development activities into the office sector, and reaffirms our confidence in the London office market.’

The value of Halladale’s portfolio, including aggregate value, was £632m at 30 April. In its last full-year accounts, published on 30 April, pretax profits increased by 60% to £6.29m and the total dividend increased by 31% to 3.8p a share.

Jones Lang LaSalle advised Halladale and Lambert Smith Hampton acted for the vendor. Senior debt was provided by Bank of Scotland.