Major office deals raise cash and hopes


Two significant office building deals have raised expectations for London’s commercial property market.

So far this year, sales of commercial property have been the lowest on record. However, the deals being discussed on behalf of UBS and Standard Life would raise a total of £285 million. The first is Standard Life’s building at 10 Gresham Street.

The investment company originally placed 50% of the property on the market but the German fund manager Union Real Estate is hoping to buy it all for around £150 million, as one of a number of investment opportunities currently being explored by the firm.

The second is banking giant UBS’s Milton Gate development, for which investment bank Evans Randall have offered £135 million.

However, finance has not yet been secured and UBS are in talks with other prospective buyers. Both sales would reflect a yield of around 7%.