11-12 St James’s Square is the third property on the square to be sold to a Hong Kong-based investor this year, indicating that interest from foreign investors in the UK’s commercial property market hasn’t dwindled, despite concerns over Brexit and global economies.
Chinese Estates paid £175m to the Employees’ Provident Fund in Malaysia for the 80,000 sq ft office building, representing a yield of 4.45%.
The building is currently multi-let to several tenants, such as Orangefield Group, who is paying a net effective rent of £75per sq ft; Smith Industries, who is paying a net effective rent of £79.50 per sq ft; and Blackstone Property Management, who is paying a net effective rent of £53 per sq ft.
Current available space in the building totals circa 20,500s sq ft, with rents ranging from £79.50 per sq ft to £125 per sq ft.
Eugene O’Sullivan, Surveyor and Director at Morgan Pryce, says; “Chinese investors clearly see future growth and continued strength in the UK commercial market. Our legal system is appealing, as are the long-term returns achievable from our prime assets.”
This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.
