A consortium of private investors has completed the acquisition of 38-42 Kingsway, London, which comprises two units let to Bill’s and Paul UK.
The purchase price of £7.5m reflects a net initial yield of 3.80%.
Jack Silvani, director at Coffer Corporate Leisure said: “It is a difficult task to purchase prime assets in Central London - particularly in the sub £10m price bracket as competition is fierce and stock is limited. This supply/demand disparity is continuing to compress yields on prime/super prime assets but isn’t reflective of the wider investment market where we anticipate yields for secondary product may begin to drift.
“The footfall in and around Holborn Station which is partly channelled through Kingsway is impressive and, crucially, present 7 days a week. Commercial rents on Kingsway and other areas of Midtown, particularly in the restaurant sector, trade at a significant discount to other West End locations and we believe there are good growth prospects.”
Savills acted on behalf of the vendor, a private investor. Coffer Corporate Leisure acted on behalf of the purchaser, a consortium of private investors.
