Middle Eastern investor buys up Sullivan & Cromwell’s European HQ
A Middle Eastern investor has snapped up 1 New Fetter Lane, the European headquarters of international law firm Sullivan & Cromwell.
UBS Triton Property Fund sold the Grade A property, which is located just south of Holborn Circus, for £69m. Sullivan & Cromwell recently agreed a new lease on the building which will end in 2026.
Read more: Risk of more pain for UK commercial property says Bank of England
The transaction brings Middle Eastern investment in central London since the Brexit vote to more than £1bn, UBS said.
Howard Meaney, UK head of Global Real Estate at UBS, said: "In line with the strategy of UBS Triton, we acquired this asset at an early stage in Midtown's growth cycle and the area has since seen significant regeneration and improved transport connections, making it an increasingly sought after central London business destination."
Read more: UK commercial property investment dropped off in the first half of 2016
The sale comes at a time of uncertainty for UK commercial property. Figures from the Bank of England have shown that commercial property transactions in the third quarter of 2016 fell by 27 per cent as compared to the year before. In addition, the Bank has warned that the sector is at risk of further losses if foreign investors withdraw from Britain.
Development activity is also expected to fall this year. Property firm Savills has predicted that development will drop by 30-40 per cent as lenders and borrowers steer clear of risky projects.