125 Wood Street has been sold to commercial property investors, Orchard Street Investment Managers. The 46,000 square foot London office space development was bought for £25 million for one of their clients’ pension funds, from clients of international firm Invesco Real Estate. The initial yield of the sale is over 9 percent.
London’s office market has experienced substantial growth in the last few months on fears that there will soon be a bottleneck in availability. Orchard actively plan to capitalise on this feature by adding value to an already attractive property.
The building is let for another two-and-a-half years to Commerzbank, Germany’s second largest bank after Deutsche Bank. Orchard Street have stated their intention to refurbish the building at the end of the lease period, believing that the London office rental market has strong growth potential over the coming few years – a rarity in the current climate.