LaSalle Investment Management has bought a London office asset from Aberdeen Property Trust.
The investment manager said it paid Β£80.6m (β¬111.2m) for 3-8 Whitehall Place in Londonβs West End.
Aberdeen Property Trust, managed by Aberdeen Asset Management, sold the property sooner than it had planned, fund manager James McLean said.
βThe property was a good-quality asset, which surpassed our price target much earlier than we had envisaged due to the strong demand for office assets in the west end of London,β he said.
βThe monies from the sale will be used to diversify the portfolio further and invest in long-term opportunities on behalf of our investors.β
The 94,725 sq ft property is let to the UK governmentβs Department of Environment and Climate Change (DECC) until 2029, with a break in 2021.
Annual rents are Β£625,000, with an upward-only rent review in December next year.
Nick Howitt, director at βLaSalle Investment Management, said the deal reflected the managerβs strategy of buying βlarger, high-quality assetsβ.
He added: βInvestor appetite and competition for the best Central London assets remain strong, and this asset is rare for its immediate sub-market offering the opportunity for both rental and capital improvement.β
The Whitehall area is, Howitt said, now starting to attract a βbroader setβ of occupiers.
βThis is, in part, due to its position next to the popular commercial sub-markets of St Jamesβs, Victoria and Covent Garden but is also being driven by a number of redevelopments that are substantially improving the area for both office and alternative uses,β he said.
