London & Oxford buys £128m office opposite Bank of England
London & Oxford has splashed £128m on a City of London office block at 75 King William Street, EC4, just a stone’s throw from the Bank of England.
The building, which is home to the National Bank of Greece, Danske Bank, and recruitment giant SThree, is made up of about 128,000 sq ft of office and retail space, and sits directly opposite Bank station.
The deal, which represents a net initial yield of 4.59% and a capital value of £997 per sq ft, is the latest show of confidence in the City’s prime market, which has remained resilient throughout the third lockdown. It is let at a passing rent of only £46.60 per sq ft overall.
London & Oxford has splashed £128m on a City of London office block at 75 King William Street, EC4, just a stone’s throw from the Bank of England.
The building, which is home to the National Bank of Greece, Danske Bank, and recruitment giant SThree, is made up of about 128,000 sq ft of office and retail space, and sits directly opposite Bank station.
The deal, which represents a net initial yield of 4.59% and a capital value of £997 per sq ft, is the latest show of confidence in the City’s prime market, which has remained resilient throughout the third lockdown. It is let at a passing rent of only £46.60 per sq ft overall.
A fund managed by London & Oxford picked up the property by buying the shares in First King Properties, which owns the block, from Singaporean company Keppel Land.
Dylan Tudor-Williams, head of real estate at London & Oxford, said: “The acquisition of 75 King William Street has further increased our City portfolio with another high-quality asset.
“This investment forms part of our continued acquisition programme into prime real estate and underscores our confidence in the long-term strength of the market.”
James Nicholls, director of City capital markets at Colliers, who advised London & Oxford, added: “Multilet buildings of this profile in the heart of the City of London rarely come to the market so we were pleased to have advised London & Oxford on securing this asset in an off-market transaction.
“75 King William Street offers a compelling business plan to generate future value in a prime location given its multilet profile and low office rents. The building already benefits from exceptional transport links and local amenities, however with the opening of Crossrail and the major upgrades to Bank station due to complete in 2021, the future is looking very positive for 75 King William Street.”
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Photo: Radius Data Exchange
