Orchard Street acquires 125 Wood Street

Orchard Street Investment Management LLP, a leading UK specialist commercial property investment manager, has purchased 125 Wood Street, London, EC2 from clients of Invesco Real Estate for £25.2m.

The property has been acquired for a UK pension fund client of Orchard Street.

125 Wood St is a 45,500 sq ft leasehold office building occupying a prime location in the City. The property is let to Commerzbank for a further 2.5 years and provides an excellent opportunity to upgrade and add value at the end of the existing occupational lease. The purchase will provide Orchard Street with a net initial yield of 9.3%.

Knight Frank represented Invesco Real Estate.

Gary Felce, CIO of Orchard Street, said:

“We see the London City office market as one of the few markets to have good rental growth prospects over the next few years. The end of the present occupational leases at 125 Wood Street are well timed for Orchard Street to refurbish the building and let into what we expect to be an attractive marketplace. 125 Wood Street is an attractive combination of a high yielding investment opportunity with significant potential for us to add value. Orchard Street still has substantial funds available for investment and are seeking further investments in both office and retail sectors for all our clients.”