AEW, Tristan ‘flip’ London asset

Wimbledon Bridge House, which was only acquired in September last year for £40m, has been sold for £58m

AEW Europe and Tristan Capital Partners have sold an office asset in southwest London for £58 million (€60 million; $73 million) that was only acquired in the second half of last year for £40 million.

Wimbledon Bridge House is a development that the co-managers acquired in September. It includes 168,000 square feet of office accommodation, four retail units and a car park with 300 spaces. The building is currently totally let to six office tenants and four retailers.

The exit on behalf of European Property Investors Special Opportunities, co-advised by Paris-based AEW Europe and London’s Tristan Capital Partners, is being seen as an example of strong demand for some core assets. UK asset manager Hermes Real Estate, which manages pension fund investments for telecoms group, BT, is the buyer in this case.

The price represents a net initial yield of 7.1 percent.
Ric Lewis, chief executive officer of Tristan said in a statement: “The UK market, which has seen the fastest re-pricing in the recent downturn of any major European real estate market, is now benefitting from strong institutional investor interest, particularly in core assets.”

He added: “The fund decided to take profits for its investors after a relatively short period of time.”

Merrick Marshall, executive director at AEW Europe, added the co-managers had struck two new lettings recently.

“It was an opportune time (to sell), and earlier than planned, to take advantage of the strong demand from institutions and other investors for this type of core asset,” he said.