Hanover PUT acquires 105 Piccadilly W1 for circa 13.5 million Rockspring Property Investment Managers Limited (formerly PRICOA Property Investment Management), acting on behalf of Hanover Property Unit Trust (“Hanover”), has acquired the leasehold interest in 105 Piccadilly, London W1 from Orchard Street Investment Management LLP, acting on behalf of GE Commercial Finance Real Estate. The purchase price of £13,540,000 reflects a net initial yield of 11.48%. 105 Piccadilly comprises 33,561 sq ft (3,117.92 sq m) of office accommodation spread over 9 floors. The property is currently let to nine tenants, including Oxus Gold, Skyepharma, Unigestion and Triton, under twelve separate leases with a combined rent of £1,642,870 per annum. Commenting on the acquisition, Robert Palmer, Director of Rockspring, property advisers to Hanover, said:
“105 Piccadilly provides a strong income return and complements the Trust’s existing portfolio, providing exposure to the West End office market.”
Hanover was restructured as a Jersey-based property unit trust in January 2004. Since then it has secured an additional 17 new investors, bringing the total number of investors to 116. Since September 2003 its NAV has increased by 40% through a combination of capital growth and new cash inflows. Hanover has been one of the top performing balanced PUTs in the HSBC/IPD Index over three years recording a total return of 14.2% per annum.
King Sturge advised Rockspring and GVA Saxon Law advised Orchard Street Investment Management LLP.