Walkie Talkie London office block sold for a net yield of 3.40%

[nmb]

I see that the Walkie Talkie office block in London has been sold for a record £1.28b on a yield of just 3.40%. If the UK has such bad prospects after Brexit, why are investors happy to buy on such small net yields?

 

[realdeals]

Why would the new owners buy on such a low yield? When base rates rise and if inflation picks up this would look even worse.

 

[Longterminvestor]

Why would anyone invest on a 3.40% yield? I can only assume it is a hedge off against the currency gains overseas investors have seen against sterling over the last 12 months.

 

[realdeals]

Maybe there are major rent reviews on the horizon? However, I suspect it has something to do with the weakness of sterling.

 

[diyhelp]

Forget the rental yield - this must surely be a play on the currency benefits for overseas investors. Why else would they pay such a high price?