OverseasInvestments: With much investment activity still concentrated on London, Irish buyers have again been active this week buying a prime office investment in the city at an initial yield of around 5 per cent.
Liberty Asset Management - one of Ireland's leading independent financial services companies - bought the investment for Paddy Shovlin of Landmark Developments in an off-market deal for £100 million (€147 million).
The Governor's House, a freehold office building that houses the headquarters of the Prudential, is located on Laurence Pountney Hill, just off Cannon Street. It has 11,705sq m (126,000sq ft) of Grade A offices which were developed in 1998.
Andrew Watt of agent Finnegan Menton, who advised Liberty on the investment, said that with the office occupier market in the city gathering strength and vacancy rates for top grade space down to just 4.5 per cent, the market appeared set for some strong rental growth.
Kevin O'Shaughnessy of Liberty Asset Management said they were "bowled over with the acquisition of this unique jewel in the London office market". It was superbly located and satisfied all their criteria, especially considering the blue chip tenant.
He said he was convinced that the investment was set for unrivalled growth by providing a strong yield in the years ahead.
Meanwhile DTZ Sherry Fitz-Gerald and DTZ UK have advised a private Irish Investor on the acquisition of an office building and an adjoining mixed-use building on Lisson Grove in Marylebone, London, NW1 for a reported £17.5 million (€25.5 million).
The office building is currently let to Trillium (Prime) Property GP Ltd, for a term of 18 years.Trillium (Prime) Property GP Ltd hold the property for the secretary of state and the Department Of Works and Pensions (DWP) through their outsourcing contract.
