Grosvenor Fund Management has instructed JLL to sell a prime office block in St James’s for £225m, CoStar News can reveal.
Grosvenor has appointed JLL to sell the freehold interest in Almack House at 28 King Street, SW1, for a net initial yield of 3.6%.
The 97,563 sq ft property, which was refurbished in 2009, is fully let on multiple leases to tenants including Xstrata, Warburg Pincus International, Russell Reynolds Associates and Anschutz Sports Holdings.
Grosvenor made an attempt to sell the office building in 2012, also through JLL, for around £165m but, despite good investor interest in the asset, opted to withdraw it from the market after shareholders in the Grosvenor Office Fund decided they no longer wanted to sell it. Since then Grosvenor has undertaken various asset management initiatives and has benefitted from the wider rise in commercial property values in the West End.
Last September, Grosvenor Fund Management refinanced the four-strong Grosvenor London Office Fund (GLOF), in which Almack House is held, with a five-year £201m senior loan from BNP Paribas Corporate and Investment Banking and Sumitomo Mitsui Banking Corporation (SMBC).