DWS takes a chance on 70 Chancery Lane

Asset manager DWS is under offer to acquire a leasehold interest in a mixed-use block in London’s midtown market, following the recent sale of its interest in a smaller office block nearby. The company is understood to be under offer for 70 Chancery Lane, WC2, for around £68m, which reflects a yield of around 5.75%. The 77,812 sq ft office-led block is single-let to engineering firm WSP for 15 years, with rent reviews every five years. It was refurbished earlier this year, achieving EPC A and 4.5 star NABERS ratings. The new 175-year leasehold interest being marketed by Knight Frank will provide further income from seven retail units and nine residential flats on site, with the gross rents for the whole property amounting to almost £4.7m. The freehold interest in the asset is owned by the Trustees of Viscount Folkestone, according to EG Radius data. The move comes after DWS sold St Bride’s House, a 50,000 sq ft office located at 10 Salisbury Square, EC4, to Invesco and Simten for £22.9m. DWS and Knight Frank declined requests for comment.