A Spanish property company, new to the London commercial property market, has spent £44.5 million on a City building.
Allegra European Holdings has bought 5 King William Street from Resolution AM and Morley Fund Management at a net initial yield of 7.43 per cent, Property Week has reported.
Currently fully let to Daiwa Securities at a passing rent of £3.5 million, the property has four years left on its lease.
A source told Property Week the building represents a redevelopment opportunity when the lease expires.
Commercial property investors are showing interest in offices in London, following recent price corrections, which have made its commercial property more affordable.
Interestingly, the streets’ underground station is one of seven "deep level" lines no longer in use. King William Street was closed in 1900 and only used again as an air raid shelter during World War 2.