Europe Real Estate has paid 拢207.5m (鈧�265m) for a London office asset sold by a Green Property entity.
The listed property company said it bought the corporate vehicle that owns 111 Buckingham Palace Road in London鈥檚 Victoria district.
The 227,165sqft asset was held by Kish Holdings, managed and controlled by Green Property.
Kennedy Wilson said the sale of the fully let building reflects a 5.1% gross yield.
The Victoria district of the UK capital has attracted significant investment in the current cycle.
Canada Pension Plan Investment Board (CPPIB) agreed a joint venture with the UK鈥檚 Land Securities in 2012 to redevelop a 5.5-acre site opposite Victoria station.
Completion on the residential, office and retail development is expected between 2016 and 2018, with the site鈥檚 final value estimated at 拢1bn.
With Grade-A office vacancy at 1.5% and prime headline rents above 拢80 per square foot, the Victoria market is 鈥渢hriving鈥�, according to Mary Ricks, president and chief executive at Kennedy Wilson Europe.
She said: 鈥淭he area is benefiting from substantial investment and redevelopment, which will see its attractiveness grow as a West End destination.鈥�
