Spanish property company invests £44.5m in City

The Spanish property company Allegra European Holdings has bought its first UK building – 5 King William Street – for £44.5 million.

Located in the city of London, the 82,000 square feet building was purchased from Resolution AM and Morley Fund Management at a net initial yield of 7.43 per cent, Property Week reports.

It is currently let to Daiwa Securities at a passing rent of £3.5 million, with a further four years to run on the lease.

A source told Property Week that the 1980s building presents a redevelopment opportunity when the lease expires.

Resolution AM and Morley were advised by Knight Frank and Allegra was advised by Atisreal in the deal.

Earlier this month research by Knight Frank revealed that London's West End has the highest office rents in the world, with those in the City fifth most expensive.

The Global Real Estate Market Annual Review showed that prime rents in the most expensive areas have reached $220 per sq ft (£110 per sq ft) a year.

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