Commercial Finance Specialists

A major property investment firm has bought a commercial property in Covent Garden in a multi-million pound deal.

Blackrock UK Property Fund has purchased the freehold of a major Covent Garden commercial development for £58.8 million.

The unit at 25 Bedford Street includes 76,000 square feet of office space, eight apartments and a retail unit currently let to Tesco, reports Property Week.

This deal represents a net yield of 5.1 per cent and takes the total funds raised by previous owners Welput through commercial property sales in recent months to £145 million.

All of the cash that the firm has raised will be put back into property investment projects.

Nigel Kempner, chairman of Grafton Advisors who counselled Blackrock on the deal, said the property was a good-quality asset in a very desirable part of London.

"Our focus is now on identifying new opportunities where we believe we can actively add value as we endeavour to deliver the best returns on behalf of our unitholders," he added.

Blackrock recently stated that the value of its property portfolio is stabilising and it therefore expects good financial results this year.

Posted by Allan Flowers.