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LONDON-Sir John Mactaggart and David King, whose Central & City Properties was one of the leading developers of the 1980s, have joined forces again to buy a 64,238 sf City of London investment. The Mactaggart Third Fund in partnership with David King, backed by Western Heritable Investment Company, has bought NPI’s long leasehold interest in 11 Old Jewry, London, EC2 for £16.5 million ($23.27 million).

The building is let on 16 separate leases producing an annual rent roll of £1.8 million ($2.54 million) averaging just £28.28 ($39.87) per sf. Tenants include Allied Irish Bank, Citibank, Eden Group and Angela Mortimer. The headlease, which is held from the Grocers Company, expires in June 2032.

The price reflects a net initial yield of 10.8% but Mactaggart and King plan to improve this by refurbishing office suites as they come available, increasing rents to a projected £45.00 ($63.45) per sf. Smiths Gore Commercial advised the purchasers. Henderson Global Investors, Insignia Richard Ellis and NAI Gooch Webster advised NPI.

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