Hong Kong investor CC Land Holdings has completed the £292m purchase of One Kingdom Street, in Paddington, London, in an off-market deal with TH Real Estate.
The 264,898 sq ft office building was sold by TH Real Estate on behalf of Cityhold Office Partnership at a yield of 4.86% and a capital value of £1,100/sq ft.
The Sheppard Robson-designed nine-storey block is let to tenants including Vodafone, Shire, Mysis and Statoil. The weighted average unexpired lease term is 6.5 years (to breaks) and the average office passing rent is £55/sq ft.
Jasper Gilbey, fund manager, Cityhold Office Partnership, TH Real Estate, said: “The sale of One Kingdom Street is further evidence of the Cityhold Office Partnership seeking to realise performance once asset management initiatives have been successfully implemented. The venture will actively seek to reinvest the proceeds throughout 2017 – with a focus on gateway continental European cities such as Berlin, Munich, Paris and Madrid.”
Peter Neal, senior portfolio manager, TH Real Estate, added: “This sale marks the end of the London disposal programme having sold the Peak in Victoria in December last year for £145m. Efforts will now be focussed on actively managing the residual £700m London portfolio and selectively redeploying the capital into other London sub-markets.”
Michael Elliott, JLL and Ashurst acted for TH Real Estate. CC Land Holdings was represented by Kieran D. Cotter & Co and Addleshaw Goddard.
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