Devonshire Investment Holdings, advised by Fineman Ross, has sold its virtual freehold interest in 12 South Molton Street, London W1 to a private overseas investor for approximately £8 million. The deal reflects a net initial yield of less than 2.9%.
The 2,550 sq ft (237 sq m), five-storey property comprises retail space on the ground and lower-ground floors and office accommodation on the three upper floors. The retail space is let to Forever Flawless on a 10-year lease from 2013, with a break in the fifth year and the office space is let to Devonshire Investment Holdings on a new 10-year lease, again with a break in the fifth year.
Edward De Stefano, of Fineman Ross, comments: “The premium yield achieved against recent transactions on the street demonstrates the value overseas investors place on the deliverance of an off market transaction.”