Sunday, April 01, 2007

ABN Amro’s London HQ Nearing Sale for £180 Million

Citywire Blogs - March 30, 2007

From Property Week

ABN Amro’s London headquarters is to be bought by fund manager Prupim in a deal that will reflect one of the lowest ever yields in the City of London.

In an off-market deal that is expected to complete next week, the fund manager has paid more than £180m for the building at 250 Bishopsgate, at a yield close to 4%, from Mayfair-based investment bank Evans Randall.

Although buildings have been sold for lower than 4% in the City, they tend to have vacant floors or other asset management angles.

So what's the investment angle for Prupim when the yield is so meagre and you can more income (and less hassle) from a cash ISA?

Prupim’s property arm has been working with its fixed income team to buy buildings for its annuity business with long leases and index-linked rental increases that are let to companies with good credit ratings. Sphere: Related Content

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