Merivale Moore plc - Offices Sale - London SW1, 25/27 Buckingham Palace Road, Warwick House

Date: 07 Jan 2002

Merivale Moore plc, the property investment company specialising in Central London offices and South East industrials, has exchanged contracts to purchase a new 125 year leasehold interest in Warwick House, 25/27 Buckingham Palace Road, SW1 from The Grosvenor Estate for £5.2m, reflecting a net initial yield of 7.1% and a price per sq m of £2,691 (£250 per sq ft). The acquisition will be financed from existing bank facilities.

The property is located in a prominent position on the East Side of Buckingham Palace Road, between its junctions with Palace Street and Bressenden Place. The property is situated directly opposite the entrance to the Royal Mews and adjacent to the Rubens Hotel.

Warwick House forms part of an attractive terrace, constructed around the turn of the last century. The property provides bright and well configured office accommodation, with one shop, arranged over basement, ground and five upper floors having a total net floor area of 1,933 sqm (20,800 sq ft).

Let to seven tenants on nine leases, the total gross mpassing rent of £433,960 per annum equates to £247.57 per sq m for the offices (£23 per sq ft), which compares with an estimated rental value of £323 per sq m (£30 per sq ft).

Nelson Bakewell acted on behalf of Merivale Moore and Healey & Baker acted for The Grosvenor Estate.

Mike Probert, Merivale Moore's Chief Executive, stated "Merivale Moore will continue to enhance its Central London office portfolio through acquisitions of this nature where there is scope to make improvements and thus add value. In this case, we are hopeful of achieving a 9% net yield by the end of 2002".

Related website: Merivale Moore plc

Where do I go now?: » View the latest news items » View the news archive » Subscribe to Weekly Property Newsletter » Submit news