Private equity real estate company Evans Randall Investors has sold prime London data centre Sovereign House to the current tenant of the building, Digital London, for £40.35 mln (€46 mln), representing a net initial yield of 4.8%.
Located at Marsh Wall in London’s Docklands, Sovereign House occupies a virtual freehold island site, and offers over 72,000 ft2 (6,690 m2) of flexible commercial space extending over basement, ground and five upper floors.
'The growth of the digital economy and a greater appreciation of the importance of good connectivity have highlighted how data centres form an important part of the infrastructure chain,' said Paul Kendrick, chief investment officer at Evans Randall Investors.
'The high level of interest in this building and the subsequent sale to Digital London Limited, which has been a long-term tenant, is a vote of confidence in the quality of this building. We are delighted with the outcome of this sale and the returns generated for ourselves and our co-investors,' Kendrick addded.
The building was put up for sale by Evans Randall Investors in September last year, six years after it was acquired for £27 mln. The property attracted five bids from both UK and international investors with Digital London completing just before Christmas.
Digital London Limited is a wholly owned subsidiary of Digital Realty Trust, one of the largest publicly traded US REITs.
Evans Randall was advised on the sale by CBRE and Paul Hastings.