Lazari Investments has bought the UK headquarters of Japanese technology company Fujitsu for £123m.
It has bought 22 Baker Street, W1, and its adjoining addresses from the Loftus Family Trust. The price paid reflects a yield of close to 3.75%.
Fujitsu occupies 50,812 sq ft on a lease expiring at the end of 2025 at a rent of £78.30 per sq ft. The remainder of the 74,031 sq ft building is made up of retail, let to occupiers including Boots.
The building was redeveloped and completed in 2003 after a complex planning battle and initially struggled to gain a tenant until Fujitsu agreed a deal two years later.
Lazari already owns a substantial portfolio on and around Baker Street which, as of 31 March 2017, was valued at £315.3m, comprising eight buildings over 311,368 sq ft.
In its annual report published earlier this year, it said it considered the area to represent good value.
“The Baker Street Estate is a prime example of our policy of identifying a particular sector of the West End, which we believed to be relatively under-valued.
“As a key component of Marylebone, Baker Street is now firmly established as a premier West End address with a broad appeal to both commercial and residential tenants.
“We have taken an active role on the owners’ board of the Baker Street Quarter Partnership, which has been focusing on public realm initiative to further improve the local environment and amenities.”
At the start of the year, Lazari agreed a £409m refinancing with Lloyds Bank and at the same time undertook a restructure, which saw the establishment of two new companies – Lazari Developments, which has a developer/trader model, and Lazari Finance, which issues property loans.
GM Real Estate advised Loftus Family Trust. Colliers International advised Lazari.
To send feedback, e-mail david.hatcher@egi.co.uk or tweet @hatcherdavid or @estatesgazette
