LONDON, June 24 (Reuters) – UK property company Development Securities (DSC.L) said on Thursday it has acquired a mixed-use central London property with partner Caenwood Ventures as part of a strategy to widen its portfolio to residential properties.
It bought the 30 office, 29 residential flats and four retail unit building at Westminster Palace Gardens, Victoria, for 10.1 million pounds ($15.1 million), reflecting a net initial yield of 6.77 percent.
Development Securities and Caenwood, along with residential development manager Alchemi Group, plan to convert the remaining offices to apartments, taking advantage of the rising prime central London residential market.
The company has a strategy of widening its trading portfolio to include residential, a market it has not traditionally traded in.
Westminster Palace Gardens was built for residential use. (Reporting by Andrew Macdonald; Editing by Mike Nesbit) ($1=.6677 pounds)