City of London offices purchased by Ignis UK Property Fund

£43.5m paid to Climate Change Capital for 77 Gracechurch Street, EC3

Article posted: 05 Aug 2011

The Ignis UK Property Fund has purchased office space in the City of London with the acquisition of 77 Gracechurch Street, EC3. The mixed-use scheme was bought from Climate Change Capital for £43.5m, with a net initial gain of 5.38%.

Developed by Land Securities in 1985 and comprehensively refurbished in 2008, the 49,295 sq ft property occupies the majority of an island site and comprises a basement, ground and six upper floors. It is currently fully let to seven office tenants as well as providing retail accommodation, a public house and restaurant.

Climate Change Capital purchased the freehold of the property in May 2010 for £33.9m from Greenhills Real Estate. It has since worked closely with the occupiers to improve energy efficiency, resulting in both landlords and tenants saving money. Efficiency measures taken include the installation of a unit in the lobby that monitors energy usage every half hour.

Tim Mockett, the Joint Managing Director of the Climate Change Property Fund said: "Purchasers are increasingly attracted to energy efficient buildings, with this building meeting EPC Level B. We are striving to make all our buildings more energy efficient in light of rising energy and carbon related costs."

George Shaw Fund Manager of the Ignis UK Property Fund said, “We are delighted with the purchase of this asset which offers an attractive blend of high quality income and asset management opportunities.”

Jones Lang LaSalle advised Ignis; Climate Change Capital was advised by Michael Elliott.

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Posted by Janet