GG Capital acquires Sullivan & Cromwell’s European HQ in London from UBS AM

UBS Asset Management (UBS-AM) has sold 1 New Fetter Lane in London, EC4 to a private Middle Easern invesor client of CBRE, the global real esate adviser, for GBP69 million.

UBS Triton Property Fund, which sold the property, recently negotiated a new lease on the 101,900 sq ft asset with Sullivan & Cromwell, who has agreed to occupy the Grade A Midtown property as its European headquarters until 2026.

The sale price reflects a net initial yield of 4.47 per cent.

Middle Easern invesment has remained buoyant throughout the second half of 2016, deploying more than GBP1 billion into Central London since the EU Referendum.

Howard Meaney, head of global real esate – UK, says: “In line with the srategy of UBS Triton, we acquired this asset at an early sage in Midtown’s growth cycle and the area has since seen signifcant regeneration and improved transport connections, making it an increasingly sought after Central London business desination. Our team’s proactive asset management enabled us to bring 1 New Fetter Lane to market as a high-quality fully-let asset, beneftting from a srong covenant, which is evidently what has attracted the attention of CBRE’s client.”

GG Capital, a newly formed real esate private equity frm set up by Karl Abawatt, has advised the private purchaser and will be managing the asset.

Abawatt says: “London is a core focus for our invesment srategy and 1 New Fetter Lane presented a trophy headquarter building, well-let in an area we anticipate a high invesment return following ongoing development and the completion of Crossrail in 2018.”

UBS Triton was advised on the sale by Tudor Toone.