LONDON (Alliance News) - Real estate investment trust Shaftesbury PLC Monday said it has bought Jaeger House, 57 Broadwick Street, London for GBP30.75 million.
In a statement, Shaftesbury said the property, built in 1970, currently comprises 24,900 square feet of office and retail space on the lower floors, and 37 flats sold on long leases above the commercial space. Commercial tenancies, which expire in June 2015, produce a current rental income of GBP0.9 million a year.
"The building offers a number of interesting options including the potential, subject to planning consent, to increase and reconfigure space and introduce new planning uses," it said in a statement.
"Jaeger House is a valuable addition to our substantial holdings in Carnaby and Soho, which now have a combined book value in excess of GBP860 million. Broadwick Street is a few minutes from the Dean Street entrance to the new Tottenham Court Road Crossrail hub," Chief Executive Brian Bickell said.
In a separate statement, Derwent London said it had sold the property and the deal represented a net initial yield of 2.7% to Shaftesbury.
"The disposal is in line with our strategy of making opportunistic sales into a competitive investment market. In realising a value significantly in excess of the December 2013 valuation we will take the opportunity to recycle capital into our extensive development programme, where we are currently on site with a total of 586,000 square feet," Derwent Chief Executive John Burns said.
Shaftesbury shares were down 0.6% at 645.5 pence early Monday. Derwent London was down 0.3% at 2,675.2 pence.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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