WELPUT exchanges on £135m St James’s Square sale to Joint Treasure
26 April 2017
WELPUT has exchanged contracts to sell 3 St James's Square, SW1, to a consortium of investors in Hong Kong private equity firm Joint Treasure International for £135m – a net initial yield of 3.96%.
The sale price reflects a capital value of £2,609 per sq ft.
WELPUT, the specialist central London real estate fund managed by Schroder Real Estate and advised by Grafton Advisors, acquired the building in 2012 from clients of Aberdeen Asset Management for £66.4m.
The 55,000 sq ft building, comprehensively refurbished in 2015 to provide 51,747 sq ft of grade A offices, has since been let to tenants including Lodha Developers, Riverstone Europe and Silver Ridge Asset Management. The average rent is £107 per sq ft, with rents of up to £160 per sq ft on the premium suites overlooking St James’s Square. The lower ground and ground floors are let to Legacy Luxury Wellness, a luxury gym and spa operator.
Ker Gilchrist of Grafton Advisors said: “The asset has been sold in order to recycle capital into the portfolio including the major refurbishment project at 20 St James’s Street and also to target new investments. This sales process generated strong demand from overseas investors, particularly from Asia, seeking quality buildings in prime locations that generate long-term income.”
Jourdan Rajwan of Schroder Real Estate said: “The sale of 3 St James’s Square is in line with WELPUT’s stated strategy of crystallising performance upon completion of the business plan.”
WELPUT was represented by Strutt & Parker, Colliers International and Allen & Overy.