Pramerica swoops for Uxbridge HQ
Mercer Real Estate Partners has sold an office refurbishment in Uxbridge to Pramerica for £47m, a circa £30m premium to the price it paid for the building less than two years ago.
Market sources this week said Mercer had sold Harman House at a sub 7% yield.
The price paid is indicative of the turnaround in the west London office investment market as well as Mercer’s refurbishment and subsequent success in securing tenants at the building.
Mercer bought the 130,000 sq ft building at 1 George Street in 2013 from Threadneedle Investments for around £17.5m – a yield of around 9.3%.
It subsequently carried out refurbishment works of the common areas, exterior and the majority of the office floors to bring the space up to modern specification.
E & J Gallo Winery subsequently took 14,000 sq ft at a mid-£20s rent on a new 10-year lease.
Global foods company General Mills, advised by Cushman & Wakefield, regeared its lease on the 39,000 sq ft it leases on the sixth, seventh and eighth floors ahead of a lease break in April 2015. It also took a further 14,000 sq ft on the fifth floor.
The group signed a new 12 year lease and paying around £28 per sq ft. A further 30% remained available at the building with quoting rents £28.50 per sq ft.
Hanover Green and Simon Williams Commercial Property Consultants advised Mercer on the lettings.
Mercer is a privately owned real estate investment firm targeting the office, residential, retail, industrial and hospitality sectors across the UK and Europe.
Mercer was advised by Whitmarsh Holt & Young on the sale; Pramerica was advised by Capita.
