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SWIP adds London property to portfolio

13th December 2010 Print

The SWIP Property Trust (SWIPPT) has announced the purchase of 60 Charlotte Street, Fitzrovia, London, from The Premier Property Group (PPG) at £32.4m, reflecting a net initial yield of 5%.

The Trust was the largest net institutional investor in the UK real estate market in 2009 and has seen a dramatic growth in assets under management to more than £2bn.

Formerly the headquarters for Channel 4, 60 Charlotte Street was acquired by PPG in 2007.  It was then extensively remodelled and extended and let on a floor-by-floor basis. Tenants include The British Olympic Association, Lionsgate and Gaucho Grill.  The final letting to National Express Group was completed in the autumn.

Gerry Ferguson, head of UK Wholesale estate funds at SWIP, said: "We are continuing to see strong inflows into the fund from investors looking for exposure in the property market and a stable return.  The acquisition of 60 Charlotte Street, with its prime London location, very much fits with our strategy for SWIPPT of investing in core, quality property with secure income and the clear prospect of income growth. We continue to look for opportunities in the market, where we see the potential to maximise the total return from the portfolio."

PPG Director Andrew Glasgow commented:  "We are delighted to complete the sale of this landmark office building following a successful letting campaign, particularly during such a difficult market period. The price achieved reflects the quality of our building and its prospects for growth in the future. 

"We took the property to market a year earlier than planned to capitalise on fund interest in prime property, helping PPG to stay well ahead of its business-plan targets." 

SWIP was represented by Jones Lang Lasalle and DTZ acted for PPG, which is a subsidiary of Murray International Holdings and is headquartered in Edinburgh, with offices in Leeds and London.