Photographer: Chris Ratcliffe/Bloomberg

Great Portland, Aberdeen Divest a London Office Building to UBS

A joint venture between Great Portland Estates and Aberdeen Asset Management sold an office building in London’s West End to UBS Global Asset Management’s U.K. real estate business.

UBS paid 222.4 million pounds ($338 million) for the property at 95 Wigmore Street, Great Portland Estates said in a statement today. The sale reflects a net initial yield of 3.4 percent.

London’s developers are selling properties to raise money for new projects as they attempt to take advantage of a shortage of office space that’s pushing up rents. Central London office rents will jump 17 percent this year, the most since 2000, according to BNP Paribas SA’s real estate unit.

“The sale continues our strategy of recycling capital out of assets where we have created significant value and back into our portfolio of central London development and refurbishment projects,” Toby Courtauld, chief executive officer of Great Portland Estates, said in the statement.

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