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Buckingham Gate

Henderson sells 14 Buckingham Gate

​The Henderson UK Property Fund has sold the freehold interest in 13/14 Buckingham Gate, a multi let office building in London, for c. £11.5 million, to a Zurich based fund. The price reflected a net initial yield of 3.77%. The sale generated strong interest from overseas investors, attracted by the prime location with views of Buckingham Palace.

The Henderson UK Property Fund has sold the freehold interest in 13/14 Buckingham Gate, a multi let office building in London, for c. £11.5 million, to a Zurich based fund. The price reflected a net initial yield of 3.77%. The sale generated strong interest from overseas investors, attracted by the prime location with views of Buckingham Palace.

The building, totalling 12,515 sq ft, was let to 6 tenants, with lease expiries between 2015 and 2021, at an average rent of £37.65 per sq ft.

Cameron Fraser, Property Director at Henderson Property, said: “This asset has been a clear example of the Fund’s ability to identify optimum exit timing. Having identified a core prime asset with clear asset management potential, we were then able to capitalise on the strong market sentiment and are delighted by the keen pricing and performance achieved over the investment period. Having outperformed the Fund’s IPD benchmark over the last five quarters, this sale will contribute to yet another strong period for the Fund.”

Andrew Mercer, West End Investment Director at Capita Symonds, added: “Unprecedented overseas demand coupled with a supply shortage of trophy West End offices resulted in 3 rounds of bids to split a tight pack of exceptionally aggressive bidders. Future potential for residential use underpinned the value which assisted in negotiating a price which reflects one of the lowest yields ever achieved in Victoria for a rack rented office investment”.

Capita Symonds acted for Henderson.

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