SJ Berwin HQ in London Sells for Record Low Yield

Property Week reports that a new city benchmark yield was recently set after Blackstone agreed to sell 10 Queen Street Place in the City of London to Morley Fund Management for £145m. The price reflects an initial yield of 4.5% which is reportedly a record for a large tenanted City building in this cycle and reflects the fact that there is a pre-agreed rental increase at the building at the next rent review. The acquisition is for Morley's Norwich Union fund.

Blackstone leased 180,000 sq ft at 10 Queen Street Place, formerly known as Thames Exchange, to law firm SJ Berwin in 2004 on a 20-year lease at around £36/sq ft. Blackstone acquired the 210,000 sq ft building from Scottish Amicable in 2000 for £73m and redeveloped it following a lease surrender by HSBC. Sphere: Related Content