Search
 

TR Deal Signals City Upturn

LONDON-TR Property Investment Trust has bought a 34,500 sf City office building. The deal underlines growing investor interest in City offices ahead of an expected upturn in the occupational market.

By Graham Parker | Updated on June 11, 2004

LONDON-TR Property Investment Trust has bought the freehold of 6 Lloyd’s Avenue, London EC3in the City of London for £8.275 million ($15 million). The property is a 34,500 sfoffice building let to 21 tenants paying a total rent of £666,000 ($1.2 million) per annum, showing a net yield of 7.6%.Average rent on the let space is £25 ($46) per sf but 7,900 sf–or 23% of the floorspace–is currently vacant, which provides opportunities for income growth over the short to medium term.Fund Manager Chris Turner said this is the trust’s first direct property investment since February 2001, but in the last year, it has sold four properties to take advantage of rising prices and reinvested the proceeds in property equities. Further sales are expected. Turner said: “City office rents appear to be at the bottom of the current cycle, so we think this acquisition is timely. The passing rents are low and the price per square foot we have paid for the building is less than the cost of replacement.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.