The new property consists of two shops with two floors of offices and three floors of residential above, providing 3,109 sf in total. The space is leased to Pension Management (SWF) for 25 years from 1997 at a current rent of £145,000 per annum, subject to a rent review in September 2002.
The purchase price reflects an initial yield of 3.58%, but on the assumption that the rent review will achieve £420 ($610) per sf zone A on the retail space the reversionary yield will rise to over 5%.
Cushman & Wakefield Healey & Baker acted for the vendor, the City of London Corporation, and Partner Clive Bull said: "This deal is yet another example of the enormous demand by private investors and funds who desire a foothold on Bond Street. There was exceptional private investor demand, with approximately ten underbids in excess of the asking price."
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