BMO Commercial Property Trust has announced the disposal of Cassini House located in St. James’, London to unnamed sellers believed to be from Hong Kong and Singapore.
The prime multi-let freehold office building was sold for £145.5 mln (€170 mln), reflecting a premium of 11% over the last external valuation of 30 June 2021 and 19% over the year-end valuation of 31 December 2020.
The disposal of the asset - the second largest in BMO's portfolio - represents the culmination of a long-term business plan which involved a complete refurbishment, introduction of new tenants and re-gearing of leases.
This disposal is in line with the vendor's strategy of rebalancing the portfolio and using the proceeds 'in the best interests of all shareholders'.
'Following a competitive bidding process in which the Company received several high-quality proposals, we are pleased to achieve a strong net initial yield of 3.2% for this trophy property and crystallise significant value for the portfolio,' said Richard Kirby, lead manager. 'This disposal will allow the company to promptly recycle capital in a strong pipeline and adjust sector weightings. We look forward to providing a further update of the use of proceeds in due course.'