Investec Ireland negotiates £19m sale of London property
The Irish branch of international banking group Investec, has today announced that it has achieved a sale price of £19m (€28.2m) on behalf of an Irish investment syndicate through the sale of 2 Seething Lane, London EC3.
The sale represents a gain of 125% on the equity invested over the three and a half years since the property was purchased in May 2003 for £14.8m (€21.9m) on a net initial yield of 8.3%.
The tenant is the UK bank Abbey National Plc with 9 years left on a full repairing and insuring lease. The sale price of £19m (€28.2m) reflects a net initial yield of 6.45%.
Investec wealth manager John McWeeney said: “The decision to sell was based on the excellent returns generated by the investment and the outlook for similar returns in the near term given the current strength of the City office market.”
The property was redeveloped in 1990 behind a retained façade and provides 24,258 sq ft of office accommodation in the heart of the City of London. Occupiers from the insurance market have traditionally dominated this sector of the City with its proximity to Lloyds of London.
On December 31, 2006 Investec Ireland also realised a significant return for investors by disposing of a Swiss Property Investment. Investors realised a gain of 60% in a 16 month period after fees. The properties were sold for CHF30m and had been purchased in September 2005 for CHF 26.5m. The initial yield of the properties was 5.6% and the exit yield was 5%.
The underlying properties were two retail units located in the Swiss Cantons of Valais and Vaud, which surround Geneva. The tenant of both properties was a large retail agent in Switzerland.
Investec is an international specialist banking group that provides a diverse range of financial products and services to a niche client base in three principal markets, the United Kingdom, South Africa and Australia as well as certain other countries.
The group was established in 1974 and currently has approximately 4,450 employees.
Investec focuses on delivering distinctive profitable solutions for its clients in five core areas of activity namely, Private Client Activities, Treasury and Specialised Finance, Investment Banking, Asset Management and Property Activities.
In July 2002 the Investec group implemented a dual listed company structure with listings on the London and Johannesburg Stock Exchanges. The combined group’s current market capitalisation is approximately £3.5bn (€5.2bn).
