Aberdeen Standard go shopping on Harley Street

By Paul Norman - Wednesday, September 13, 2017 13:44

Aberdeen Standard Investments has bought two buildings on London's famous Harley Street for £40m.

The Standard Life Investments Long Lease Fund has bought the freehold of two buildings at 95 and 97 Harley Street in London’s Marylebone from Anglo Suisse Investments.

The adjoining period buildings are spread over five floors.

Number 97 is Grade II listed and was constructed in 1777, whilst number 95 was built in the late 1800s. Both properties were recently refurbished to provide state-of-the-art facilities and cancer treatments at the cutting edge of medicine.

Both buildings are let on long-term leases until 2040 and are guaranteed by HCA International, which forms part of the world’s largest private hospital group and is one of the Howard de Walden Estate's key tenants.

The properties are on the western side of Harley Street, surrounded by some of the world’s most prestigious medical practices, including The Harley Street Clinic, The London Clinic and The Heart Hospital. 

Richard Marshall, Fund Manager of the Standard Life Investments Long Lease Fund, said: “Harley Street has become a centre of global medical expertise and the growth in private medical tourism has allowed many facilities there to invest in the latest technology and pioneering medical techniques. As a result, real estate here has performed differently compared to other central London office locations with much less volatility over the economic cycle.

“This specific deal was an exceptionally rare opportunity to buy two prime, period freehold properties on the iconic street. The transaction offers the Long Lease Fund diversification into the healthcare sector and suits its strategy of acquiring prime assets in strong locations, let to good covenants on long leases. It also increases our exposure to alternative sources of income and new trends in real estate. As UK real estate moves into a mature phase of the cycle, long lease funds offer secure rental income with a substantial yield premium relative to UK Government bonds.”

CBRE represented the Standard Life Investments Long Lease Fund and VANHAN represented Anglo Suisse Investments.

pnorman@costar.co.uk

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