Federated Hermes has sold Wimbledon Bridge House, a major office building opposite Wimbledon Station in London that it had initially marketed as part of a £192.5 million portfolio of London offices, to London Square for a residential makeover.
London Square has paid £28 million or an 18.84% net initial yield for the building.
JLL was appointed to sell the building near the famous Grand Slam tennis championships last year.
The 2-acre site comprises 128,000 square feet of offices and five shops providing a weighted average unexpired lease term of 16.5 years to expiries and 8.3 years to breaks, on completion of the final letting. Vacant possession of the offices can be secured.
There is a planning consent from 2022, for the development of three additional storeys totalling 29,000 square feet.
In 2023, Federated Hermes instructed JLL to sell three offices in Greater London it was marketing for £195.2 million, including this one.
The Landmark portfolio comprised 500,000 square foot of offices, reflecting a net initial yield of 8.15% and a capital value of £386 per square foot.
The buildings on sale also included the 200,452-square-foot 26-28 Hammersmith Grove, W6, and the 142,402-square-foot Chiswick Tower. The portfolio was dubbed the "Landmark" as each building is a well-known prominent office adjacent to a key London transport interchange in Wimbledon, Hammersmith and Chiswick respectively.
The portfolio was withdrawn after the Chiswick Tower building was sold in March 2024 to an overseas investor for £28 million.