Hammerson has bought Stockley House in London’s Victoria from a private client of DTZ for £71.4m, reflecting a net initial yield of 4.3%.
The property, at 130 Wilton Road, is adjacent to Victoria train station where Hammerson has existing ownerships. The company is currently in discussions with Network Rail for the regeneration of the station to include a major mixed-use development.
Stockley House is a 72,500 sq ft office building. It is let to the Secretary of State for Communities and Local Government, baa and Balfour Beatty on leases expiring in 2010 and 2011. The average rent is £45/sq ft.
John Richards, chief executive of Hammerson, said: ‘The building has substantial development potential either in isolation or as part of the company's Victoria Station proposals.
Hammerson has an extensive central London development programme. I believe that Victoria will show good future performance due to the improving quality of office supply and good occupier
demand in this important sub-market of the West End.'