The firm bought the long leasehold on 107 Cheapside, which comprises 125,000 sq ft of offices and 50,000 sq ft of retail units, from AXA Sun Life. The deal reflects a net initial yield of around 9.5%. The building is 95%-let and the office space is expected to become partially vacant over the next three years. Carlyle plans to use that opportunity to refurbish the property.

Carlyle already has a portfolio of 50 properties across France, Germany and Italy but this is the firm's first foray into the UK. Now it is looking to spend a further £250 million (£396 million) on acquisitions over the next two years. The target is offices and small or specialist retail centres.

GVA Grimley represented Carlyle in the deal. AXA was unrepresented.

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