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Investors pay €100m for top site in London

SAVVY Irish investors continue to snap up investment opportunities in the booming London property market.

The latest involves a €100m deal to buy a property on London's Victoria Street.

Oregan Financial, a syndicate of Irish-based property investors put together by broker Joe O'Regan, and advised by CB Richard Ellis, has agreed to buy Nos 10-18 Victoria Street, London.

The property is fully let to the UK Department of Trade and Industry for a further 19 years without breaks. The deal was agreed at £70m (€100m) purchase price and represents a net initial yield of 4.2pc.

The building has recently undergone substantial refurbishment by the tenant, and is located in a prime office location in Victoria in London's West End.

The nine-storey property is near Westminster and comprises an office building of 7,348 sq m (79,100 sq ft) with 13 car parking spaces.

Victoria is an important commercial centre within Central London, accounting for about a quarter of the total office stock of the West End.

The area has excellent transport links and is close to Victoria Station.

The offices are let on a rent equating to £41 per sq ft. Prime Grade A top rents in the West End are currently over £100 per sq ft, with prime rents in Victoria at about £65 per sq ft.

Andrew Gunne of international property consultants CB Richard Ellis said Central London is the most landlord friendly and liquid property market in Europe, with vacancy rates of under 3pc.

"The low level of availability, together with a relatively small development pipeline coming through in the short-term, means rents are being driven significantly higher," he said.

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