WELPUT sells Covent Garden mixed-use asset for £65 million
WELPUT has exchanged contracts to sell the freehold interest in 7-8 St. Martin’s Place, WC2, for £65 million to Chanco Investment Group, a Hong Kong property investor.
WELPUTi , a specialist fund investing in Central London offices, managed by Schroders and advised by Grafton Advisors, has exchanged contracts to sell the freehold interest in 7-8 St. Martin’s Place, WC2, for £65 million to Chanco Investment Group, a Hong Kong property investor. The sale price reflects a net initial yield of 3.6% and a capital value of £1,360 per square foot. This transaction represents Chanco Investment Group’s first acquisition in the London market.
WELPUT acquired the 48,000 sq ft island site close to Trafalgar Square in 2011. The six storey property comprises four floors of offices, ground level retail, basement storage and car parking facilities. Current occupiers include the Post Office and Pret a Manger at retail level, and office occupier Redwood Publishing.
Nigel J. Kempner of Grafton Advisors, Property Adviser to the Trust, commented:
"WELPUT acquired this asset off-market with a view to considering a major refurbishment at the end of the occupational leases. This opportunity to sell to Chanco Investment Group provided the ability to maximise the value returns to unitholders whilst providing the opportunity to recycle the capital into new investments across central London, such as our recent Regents Wharf transaction."
WELPUT was represented by Strutt & Parker. The purchaser was represented by CBRE.
i West End of London Property Unit Trust (WELPUT)
For further information, please contact:
Estelle Bibby, Schroders
+44 (0)20 7658 3431 / firstname.lastname@example.org
Dido Laurimore / Ellie Sweeney, FTI Consulting on behalf of WELPUT
+44 (0)20 3727 1000
Notes to editors:
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West End of London Property Unit Trust (WELPUT) was established in 2001 as a closed ended property unit trust under the laws of Jersey. WELPUT was converted to a more open ended structure in 2014 with the approval of its Holders. The aim of WELPUT is to provide investors with an exposure to the central London office market. The objective is to outperform the market as measured by Investment Property Databank (IPD).
The primary investment focus is office properties in central London. Due to the nature of properties within central London there will be elements of other uses such as retail and residential. The intention is to focus the portfolio on large multi-let buildings. WELPUT is reserved for experienced investors who must be aware of the risks attaching to the investment.
The manager of WELPUT is Schroder Property Managers (Jersey) Limited, one of the largest managers of Jersey Property Unit Trusts, covering various sectors of the UK market.
Grafton Advisors (2006) LLP is the property adviser to WELPUT and is a partnership formed by the former senior management of Benchmark Group PLC who founded WELPUT in 2001 and now a member of the Quintain Group plc.
Schroder Real Estate
Schroders has managed real estate funds since 1971 and currently has £11.5 (€14.8 /US$18.7) billion of gross real estate assets under management as at 30 September 2014.
Most of the real estate funds referred to are unauthorised collective investment schemes as defined in the Financial Services and Markets Act 2000. Promotion of these funds is restricted and access to full information about these funds is only available to those exempt from the restriction.
For further information about Schroders’ real estate business visit www.schroderproperty.com
Schroders is a global asset management company with £276.2 billion (EUR354.4 billion/$447.7 billion) under management as at 30 September 2014. Our clients are major financial institutions including pension funds, banks and insurance companies, local and public authorities, governments, charities, high net worth individuals and retail investors.
With one of the largest networks of offices of any dedicated asset management company, we operate from 37 offices in 27 countries across Europe, the Americas, Asia and the Middle East. Schroders has developed under stable ownership for over 200 years and long-term thinking governs our approach to investing, building client relationships and growing our business.
Further information about Schroders can be found at www.schroders.com.
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