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440 Strand

TIAA Henderson Real Estate acquires Coutts & Co headquarters at 440 Strand

TIAA Henderson Real Estate (TH Real Estate) has completed the £175m acquisition of 440 Strand in the West End of London from Legal & General Property.

TIAA Henderson Real Estate (TH Real Estate) has completed the £175m acquisition of 440 Strand in the West End of London from Legal & General Property.

The 180,480 sq ft property is the headquarters of private bank Coutts & Co and has been acquired on behalf of the Henderson UK Property Unit Trust. The transaction represents a net initial yield of 4.34%.

With a long leasehold to the principal tenants, Royal Bank of Scotland, of 23 years, the Fund’s strategy continues to focus on high-quality properties with strong tenants on long leases. C.80% of the rental income is secured against the office element of the asset. The remaining 20% is let to a mix of retail tenants, restaurants and coffee shops, and present a number of interesting asset management initiatives.

Marcus Langlands Pearce, Director of UK Property Unit Trust at TH Real Estate and Co-Manager of the Henderson UK Property Unit Trust, commented: “By owning a landmark property in Central London, the deal further enhances the tenant strength and yield on the £2bn Henderson UK Property Unit Trust. Our strategy is to increase the Fund’s exposure to Central London and the property at 440 Strand provides a defensive, core asset with growth potential.”

The Henderson UK Property Unit Trust has invested over £600m in high quality assets over the course of 2014, including Capital Park in Cambridge, the new Heineken distribution centre in Derby and the Asda in Luton. The Fund is currently valued at over £2bn.

Disclaimer Issued by Henderson Real Estate Asset Management Limited, 201 Bishopsgate, EC2M 3BN. Authorised and regulated by the Financial Conduct Authority. TH Real Estate is a name under which Henderson Real Estate Asset Management Limited provides investment products and services. Past performance is not a guide to future returns. The value of investments and any income will fluctuate (this may be partly be the result of exchange rate fluctuation) and investors may not get back the full amount invested. Where opinions have been expressed, they are based on current market conditions and are subject to change without notice.

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