London & Stamford has acquired an office in Central London for £74 million ($107.79 million; €80 million) from insurance company Legal & General a year after raising funds to invest mainly in the UK’s property market.
The firm has bought the 170,000 sq ft property at 1 Fleet Place in a deal reflecting a cap rate of around 7.75 per cent. Similar properties were being sold at cap rates closer to 5 percent during the height of the real estate boom in 2007.
London & Stamford, which was founded by veteran UK real estate investors Raymond Mould and Patrick Vaughan, raised £241 million on London’s Alternative Investment Market (AIM) in anticipation of a market correction and distress. One Fleet Place was initially put up for sale for more than £100 million around a year ago, meaning the company has achieved a 25 percent discount to the original asking price.