Ivanhoé Cambridge’s 151 Buckingham Palace Road is one of close to £680m of SW1 assets released to the market in the last fortnight.
The Canadian pension fund has instructed CBRE to seek offers in excess of £220m, a circa 6% yield, for 193,639 sq ft 151 Buckingham Palace Road, SW1. The government-let building was bought for £200m six years ago.
The bulk of leases at 151 Buckingham Palace Road expire between 2015 and 2020, generating £14.2m pa. They are renewed annually to the higher of the existing rents inflated by 2.5% or RPI. There is no cap on the RPI provision.
Elsewhere in Victoria The Peak is being sold on behalf of Gerald Ronson’s Heron International, AXA Real Estate Investment Managers and the Co-operative Insurance Society.
It has a £111m price tag, reflecting a 5.03% net initial yield.