Israeli insurance and finance group Harel has sold 50 Broadway, in SW1, for an undisclosed price to a high net worth private investor represented by Investra Capital. The sale price reflected a net initial yield of circa 3.75%, according to Harel.
Israeli insurance and finance group Harel and development partner, Valeo Capital, undertook a comprehensive refurbishment of the 72,560 sq ft building, which is located five minutes from the Houses of Parliament and was pre-let in its entirety to the UK government for a term of 20 years in June 2021, with a tenant break option at 15 years.
Itzik Tawil, head of global real estate and credit at Harel Group, said: “We are pleased with this successful transaction, which is a great achievement for Harel in a time of challenging, volatile markets and a high interest rate environment. It is Harel’s long term strategy to invest in diverse real estate properties over different sectors and strategically located in major urban centres across the globe, in order to optimise our life and savings portfolios returns for our clients.”
Matthew Doyle, of Valeo Capital, added: “We are delighted to have worked together with Harel on the repositioning, letting and sale of 50 Broadway. The transaction demonstrates continued investor demand for prime office assets despite the economic backdrop.”
Stephen Down, chairman of Savills Central London investment, who advised Harel on the sale, said: “Against a backdrop of substantial market volatility, the sale of 50 Broadway demonstrates the resilience of global investor demand for top quality office accommodation in established locations, particularly when coupled with the scarcity of 18.5 years of undoubted UK government income.”
