Orchard Street acquires 60 Cannon Street, EC4 for £21.38m

Orchard Street Investment Management LLP, a leading UK specialist commercial property investment manager, has contracted to purchase 60 Cannon Street, EC4 for £21.38m reflecting an initial yield of 8.23% for its Special Situations Fund. The vendor was ING Real Estate.

60 Cannon Street is a modern grade A office with high quality retail on the ground floor. The office accommodation is let in its entirety to MWB Business Exchange for a further 12 years at a current rent of £41 per sq ft. The retailers are Thomas Pink, Prêt A Manager and Eat. This is the fourth acquisition this year for the Special Situations Fund and its first investment in the central London office market. This brings the total invested this year to £92m.

Chris Bartram, Chairman of Orchard Street, said:

“We are delighted to add 60 Cannon Street to the portfolio of the Orchard Street UK Special Situations Fund. This is our first transaction for the Fund in the City and we are confident that this opportunity provides good diversification and exposure to a market that we forecast will recover strongly.

60 Cannon Street is a good quality modern office building in an excellent location close to St Pauls. The surrounding area also contains first class retail and other facilities, as well as being convenient for important rail and tube stations. The Fund has a capacity of £300m and expects to continue its investment programme throughout the remainder of 2009 and into 2010”