WELPUT, the specialist Central London real estate fund managed by Schroder Real Estate and advised by Grafton Advisors, has exchanged contracts to sell 3 St James’s Square, SW1 to a consortium of investors in Joint Treasure International Limited for £135 million, reflecting a net initial yield of 3.96% and a capital value of £2,609 per sq ft.
3 St James’s Square was purchased by WELPUT in 2012 and was comprehensively refurbished in 2015 to provide 51,747 sq ft of Grade A office accommodation. The property has since been let to tenants including Lodha Developers, Riverstone Europe and Silver Ridge Asset Management. The average rent in the building is £107 per sq ft, with rents of up to £160 per sq ft on the premium suites overlooking St James’s Square. The lower ground and ground floors are let to Legacy Luxury Wellness, a luxury gym and spa operator.
Ker Gilchrist of Grafton Advisors comments:
“Having completed a successful letting campaign, which was testament to the quality of the refurbishment, the asset has been sold in order to recycle capital into the portfolio including the major refurbishment project at 20 St James’s Street and also to target new investments. This sales process generated strong demand from overseas investors, particularly from Asia, seeking quality buildings in prime locations and benefitting from long term income.”
Jourdan Rajwan of Schroder Real Estate adds:
“The sale of 3 St James’s Square is in line with WELPUT’s stated strategy of crystallising performance upon completion of the business plan and is a strong result for WELPUT’s investors. The sale demonstrates WELPUT’s ability to successfully reposition buildings across Central London.”
WELPUT was represented by Strutt & Parker, Colliers International and Allen & Overy.
