AFIAA has bought the long leasehold of 31 Gresham Street in the City of London from Hermes Real Estate for £70m as revealed by Property Week.

The Swiss investment foundation completed the deal, which reflects a yield of 7.5%, to buy the 159,000 sq ft office building this week.

Stanhope and Legal & General completed the development of the building, which extends over lower ground, ground, and eight upper levels, in 1998 and it located around 400m west of the Bank of England.

It is let entirely to Schroders Investment Management which occupies the building under a lease that expires in 2015.

The long leasehold expires in 2196 and Schroders pay around £40.50/sq ft overall on the office areas.

The purchase of Garrard House is AFIAAs first purchase in London and represents the foundation’s entry into the UK market.

AFIAA has retained Müller International to advise them in the UK.

Jones Lang LaSalle advised Hermes Real Estate.