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Evans Randall and Bahrain bank buy London office for £127m

Two banks - one UK-based and the other from Bahrain - have combined to buy Milton Gate office block in the financial heart of London. UBS Global Asset Management is the seller.

Evans Randall, a private UK investment bank and private equity group, has teamed up with Al Salam Bank of the Kingdom of Bahrain to buy a London office block for £127 million (€149 million; $207 million).

UBS Global Asset Management is the seller of the property called Milton Gate, at 1 Moor Lane. Al Salam Bank’s participation in the transaction was structured in compliance with Shariah principles, said the parties to the deal. Evans Randall provided the equity for the acquisition.

Milton Gate is let to leading City law firm Addleshaw Goddard on a lease with 15 years remaining and the acquisition reflects an initial yield of 7.5 percent.

The property was recently refurbished by UBS in conjunction with Exemplar Properties.

Michael Evans, chairman and chief executive of Evans Randall, said in a statement that the UK market offered “selective opportunities” for long-term investors with access to equity. “With attractive yields and interest rates in the UK at an historic low there are significant benefits to in acquiring this type of asset,” he added.

Yousif Taqi, a board member and chief executive of Al Salam Bank, said this was the bank’s first investment transaction in the UK.