The company has bought 30 Crown Place, which totals 198,000 sq ft, from the Greycoat Central London Office Fund. The price reflects a net initial yield of 5.1% but the rent is highly reversionary.
The annual rent roll is £7.16m a year, reflecting a rent on the office space of £37.30/sq ft. The next rent review is in 2015 and current prime City office rents are above £50/sq ft.
Completed in 2009, the property is 85% occupied by law firm Pinsent Masons and 15% by Crown Place Financial.
Pinsent Masons occupies the space on a 20-year lease ending in 2030. When Crown Financial’s lease expires in five years time Pinsent Masons will take over the rest of the building.
Hannover said the property would be added to one of its a closed-end real estate funds in the third quarter.
Hannover Leasing was advised by Franc Warwick. Greycoat Central London Office Development Fund was advised by CB Richard Ellis.
