UBS Asset Management (UBS-AM) has sold 1 New Fetter Lane in London, EC4 to a private Middle Eastern investor client of CBRE, the global real estate adviser, for GBP 69 million.

UBS Triton Property Fund, which sold the property, recently negotiated a new lease on the 101,900 sq ft asset with Sullivan & Cromwell, which 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 Eastern investment has remained buoyant throughout the second half of 2016, with more than GBP 1 billion deployed into Central London since the EU Referendum.

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

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

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

UBS Triton was advised on the sale by Tudor Toone.