Hermes sale shows commercial property demand

Posted on Posted in INDUSTRY NEWS

The sale of Mayfair offices by Hermes Real Estate has confirmed strong demand remains for commercial property in London.

The building at 3/5 Burlington Gardens was sold for more than £75 million, a four per cent yield, Property Week has reported.

"We went into the West End market fairly early in 2004," said Hermes’ commercial director Tim Turnbull. "We were aware that there would be some strong rental growth opportunities."

In a separate deal, a further Mayfair property recently changed hands for more than £70 million, a yield close to five per cent.

Burlington gardens has been bought by development company, EPIC and is currently let to business consultancy, Heidrick & Struggles and Riverstone Private Equity.

The property attracts some rents of more than £100/sq ft and is situated in a prime location for exclusive London commercial property.

"If you have the right building there is still demand from people looking to invest for wealth preservation," Mr Turnbull added.

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