F&C REIT’s UK Property Fund has purchased its first office property in London.
The UK Property Fund has previously focussed mostly on regional property acquisitions, however, it has now purchased the warehouse office building, Bacta House from Create REIT.
Situated on Pembroke Wharf in Kings Cross, Bacta House overlooks the Regent’s Canal and is just a short walk from two of the city’s major rail stations – King’s Cross and St Pancras. It provides 4,300 sq ft of London office space set out over three storeys.
The office property is currently occupied by brand consultancy firm, Brand Pie, which has a lease agreement on the building until July 2023 at a rate of £43.50 per sq ft. Brand Pie’s agreement also includes a tenant’s break in 2018.
The deal for Bacta House is worth £3.5 million, reflecting an initial gross yield of five per cent.
F&C’s head of offices, Daniel Plummer, commented on the UK Property Fund’s first London office purchase.
He said: “We are delighted to have made our first London purchase for the Fund in Kings Cross, one of the new London villages forecast to deliver significant rental growth.”
By: Kirsty MacGregor
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