London West End property sold at 4.22% yield

Published 26th Jan 2010

A property in Mayfair, London is close to being sold at a yield of 4.22%, the lowest so far in the West End in the current rally in property prices.

An overseas investor is buying 11 Hanover Street from Alliance Trust for £13.7m, a capital value of £1,314 sq ft.

The 10,427 sq ft building is let to a retail tenant and an office tenant, which are not in occupation and have sub-let. Easynet, owned by BSkyB, occupies the five upper office floors with 6.5 years remaining on the lease. The passing rent on the office element is £67.60/sq ft, and the total income is £611,359 a year.

Hairdresser the Headmasters Partnership occupies the ground and basement floors with over six years remaining.

Keith Bailey, investment associate at Knight Frank, said: “This transaction demonstrates the weight of overseas investor demand that is currently targeting the central London market and sets a new Benchmark prime yield for the West End core in the current upturn.”

Knight Frank research showed the increased investment activity in its Q4 statistics for West End investment, when transaction volumes rose to £1.7bn from £1bn in the first half of the year.

Source: ' PropertyWeek '

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