West End investment: Bank of Ireland's pension fund to sell upmarket offices
Bank of Ireland pension fund Salix is planning to sell an upmarket office investment in London’s West End.
Jones Lang LaSalle is quoting €20 million for 50 Grosvenor Street, London W1, a distinctive headquarters building which was bought six years ago for about £11 million (€13.7 million). If the asking price is achieved, the new owner will get a 4.5 per cent return on the investment.
John Moran of the selling agent said the intention was to capitalise on the strong London market at the moment. The building is let to Lloyds TSB, which is due to vacate it from January 31st next. The low passing rent of £825,000 per annum equates to £648 per sq m (£60.20 per sq ft). Jones Lang LaSalle says the prospects for rental growth once the current lease runs out are “excellent”.
The property is held on a long leasehold from Grosvenor Commercial Properties with another 112 years to run. The leasehold interest is geared to 10 per cent of the rents received or, in the event of an owner-occupier, to 10 per cent of the open-market rental value.
Grosvenor Street is in the heart of Mayfair, one of the most exclusive districts in the West End, which is renowned for some of the finest hotels, restaurants, private clubs and homes in the city.