M&G has purchased a prime office asset in one of central London’s key submarkets for £78.3 million (€91.64 million/$107.93 million) on behalf of an Asian separate account mandate.
It is the second such acquisition as part of the client’s broader strategy to invest in value-add opportunities following the £111.7 million (€130.73 million/$153.97 million) purchase of Fleet Place House in October 2020.
Prior to the EU Referendum, the City of London office market was the lowest yielding in Europe, but it now ranks as one of the highest of the major markets. Over the course of the pandemic and related lockdown restrictions, core office yields have compressed in major German markets, and in capitals such as Paris and Milan, but not London.
With already limited levels of office supply further restricted by the pandemic, highly accessible central business districts (CBDs) are likely to prove more resilient moving forward. This indicates a positive outlook f
