Monday 17 February 2020 12:14 pm

Barings sells listed St James's office building for £71m

Real estate investment manager Barings has sold a Grade II listed office building in St James’s to a German property investor for £71m.

Cara Real Estate, the property investment arm of Cara Investments, has acquired 7-10 Waterloo Place, in its second London deal following the purchase of 20 Soho Square for £117m in 2018. 

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Barings bought the building, which counts Brewin Dolphin, Harbour Litigation Funding and Apollo Tyres among its tenants, for £35m in 2014. 

Klaus Schupp, managing director at Cara, said: “7-10 Waterloo Place is a fantastic addition to our generational portfolio and fits our long-term strategy of investing in high quality, trophy assets in leading global cities across western Europe and the United States.”

The sale represents a net initial yield of 4.06 per cent. Barings was advised by JLL, BH2 and DLA Piper, while CBRE and Taylor Wessing acted as advisers to Cara.

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Barings head of UK real estate transactions Darren Hutchinson added: “This sale marks the successful conclusion of our business plan at Waterloo Place to restore what is a truly special building in an enviable St James’s location.

“By repositioning this asset we have been able to attract an outstanding tenant base on long leases while driving rental growth, which has enabled us to crystallise strong returns on behalf of our investors.”