German asset manager KGAL Investment Management has acquired 101 St Martin’s Lane, an office building in London’s West End, for £56 million, reflecting a net initial yield of 5.1 per cent.
KGAL acquired the property from Legal & General Investment Management for its fund KGAL Core 4. The building offers a total of approximately 47,600 square feet of leasable space.
Built in 1991, the Grade A office building offers contemporary office space together with a ground floor retail unit all of which benefit from excellent transport links. The building has a broadly diversified tenant mix currently consisting of eight tenants from different sectors.
“We continually monitor market conditions and we are convinced that now is a good time to invest in London again,” commented André Zücker, Managing Director and head of real estate of KGAL Investment Management.
“101 St Martin’s Lane, a light-filled office building, is not only promising because of London’s market potential, but it also impresses with its location in the heart of trendy Covent Garden district. We are confident that our experience in the London market and our active management approach will enable us to generate an attractive return for our clients,” he added.
KGAL Core 4, an open-ended Luxembourg fund, invests in European real estate in accordance with strict ESG criteria and with a clear focus on prime locations. “This is the fifth property we have acquired for our European Core fund. KGAL Core 4 stands out from other ESG funds with its special focus on social aspects,” said Christian Schulte Eistrup, head of KGAL’s international institutional business.