5 Savile Row, London, W1 has been sold by Kajima Properties Europe and Nomura Real Estate to a private overseas buyer.

The off-market transaction, undertaken via the sale of an SPV, reflected a price of in excess of £49m and a net initial yield of approximately 4.75%.

The property was originally purchased in 2008 from ING by Kajima Properties Europe for £40m. Kajima subsequently agreed a 50/50 joint venture with Nomura Real Estate in respect of the property.

5 Savile Row is a prime Mayfair asset. The property was designed by Squire & Partners and was completed in 2006 to provide 31,691 sq ft of high specification, Grade A office and retail accommodation.

The property is fully let to tenants including Fortress Investment Group, Blackfish Capital Management Group, Strategic Value Partners and Kilgour, French and Stanbury. Office rents range from £90.00 to £97.00 per sq ft on the upper floors of the property. The average weighted unexpired lease term is approximately 5 years. 5 Savile Row is held under a leasehold interest from the Pollen Estate.

Speaking on behalf of the joint venture, Hiroaki Iizawa of Kajima said “We are delighted to have concluded the sale of this prime Mayfair asset at the level of pricing secured and ahead of our planned timing for sale. We look forward to reinvesting in the West End market and are actively assessing new purchase opportunities”

DTZ represented Kajima and Nomura. Strutt & Parker acted for the purchaser.