BlackRock completes £30m sale of 65 Chandos Place
Global real estate advisor, CBRE, has advised BlackRock’s UK Property Fund on the sale of 65 Chandos Place, a prime freehold office building in Covent Garden for £30.2m, representing a NIY of 4.84%.
The building, which comprises 23,567 sq ft across lower ground, ground and five upper floors and is multi-let to seven tenants, has been sold to a private Hong Kong investor consortium including entities affiliated with Ayres Capital Management Limited and MCL Financial Group. Asset-level management services will be provided by GLS Estates.
Acquired in 2012 as part of a wider portfolio, 65 Chandos Place has undergone an extensive programme of floor-by-floor refurbishment works to provide modern, flexible floor plates designed to a Grade A specification.
Situated in the heart of Covent Garden, the property continues to benefit from significant investment into buildings, tenant mix and public realm by major local landowners including Capital & Counties and Shaftesbury. New mixed-use developments, such as Floral Court and Carriage Hall, are further enhancing Covent Garden’s appeal to occupiers and acting as a catalyst for growth.
Paul Tebbit, Portfolio Manager of BlackRock UK Property Fund, commented: “Having held the asset since 2012, we have successfully concluded our business plan and made the decision to sell the asset in order to focus on larger opportunities more commensurate with the size of the Fund. Covent Garden continues to perform well and has seen significant improvement in local amenity, which will no doubt benefit the building and its new owners going forwards.”
Justine Wingrove, Joint Managing Director of GLS Estates, commented “The acquisition of 65 Chandos Place underscores the enduring appeal of Covent Garden as a highly attractive investment location for both UK and foreign investors. In recent years the Covent Garden market has experienced significant growth in rental levels providing attractive future upside for the property.”