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Commercial Property News
London & Stamford resell Leeds office investment at £13.7 million profit
London & Stamford Property Limited ("London & Stamford") today announced that it has exchanged contracts with the NFU Mutual Insurance Society Limited for the sale of No. 1 Whitehall Riverside, Leeds, for £51.3million, which will yield 6.4% to NFU MISL. The 129,514 sq ft prime office building is multi-let to seven tenants including Cobbett's LLP, Mellon Analytical Solutions, Europe and Grant Thornton UK LLP.
The deal nets a nice profit for London & Stamford, which bought the propery on May 1 2009 for £37.62 million from The Royal Bank of Scotland Plc as Trustee for the NewStar Property Unit Trust.
London & Stamford is clearly right to sell when it can generate returns like this 36% on it's capital in just 9 months, hanging on to a quality office investment that merely offers an 8.75%pa yield is clearly not for them. It is also taking advantage of the current market sentiment, which it may be calculating, may not last much longer and banking some profit.
The deal nets a nice profit for London & Stamford, which bought the propery on May 1 2009 for £37.62 million from The Royal Bank of Scotland Plc as Trustee for the NewStar Property Unit Trust.
London & Stamford is clearly right to sell when it can generate returns like this 36% on it's capital in just 9 months, hanging on to a quality office investment that merely offers an 8.75%pa yield is clearly not for them. It is also taking advantage of the current market sentiment, which it may be calculating, may not last much longer and banking some profit.
Mon, 22nd Feb 2010