The Ignis Property Fund has bought a slice of the Southbank’s regeneration, having acquired the freehold of both a residential and commercial space in Southwark for £30m.
The investment firm has bought 1 America Street and 29 Great Guildford Street, an office and residential building on an island site, from the Trustees of the SE10NE Co-ownership.
“We are delighted to have secured this well let and highly attractive asset in what is becoming an increasingly desirable sector of the London office market for both tenants and investors,” fund manager George Shaw said.
1 America Street comprises 35,611 sq ft of well configured warehouse office space over seven floors let to TP Bennett until 2025. 29 Great Guildford Street provides 4,608 sq ft of Grade A offices at part ground and first floor levels let to Care UK until 2019. In addition, there are 22 apartments on the upper levels sold off on long leases.
The £30m price tag reflects a net initial yield of 4.77 per cent and a capital value of £749 per sq ft.