Oval Real Estate has completed the sale of the freehold interest in 14 St George Street for around £173 million, or a 3.4% net initial yield, as the major London office deals continue to get over the line during escalating conflict in the Middle East.
The price reflects a capital value of around £3,400 per square foot and the buyer is understood to be a private Singaporean investor client of BNP Paribas Real Estate.
Oval bought the office in 2024 from Chinese Estates Group for £125.39 million, representing a net initial yield of 4.12%. It was 100% leased at the time of sale to tenants including Antin Infrastructure Partners, Trafigura, Ellerman Investments and Aleph Capital.
The multilet four-storey building comprises 51,861 square feet of dual aspect, Grade A open-plan office space close to Bond Street and the entrance to the Elizabeth line.
The transaction will provide confidence that deals are continuing to complete at strong prices in the London office market despite the war in Iran.
Colliers reports that in central London offices £1.9 billion sold in the first quarter, with £1.5 billion forecast for the second quarter still.
James Macfarlane, director, London capital markets says March turnover was up 50% month-on-month, and over £1 billion transacted post 28 February, significantly higher than average. "Clearly we are mindful of swap rate volatility and inflation, but deals are clearing [investment committee] and investors don't seem deterred."
JLL advised Oval.