Private investor network Hotbed has bought the freehold of an office building in Kings Cross, London for £8 million. The company has acquired Marcello House from an undisclosed private individual in a deal reflecting a net initial yield of five per cent.

Private investor network Hotbed has bought the freehold of an office building in Kings Cross, London for £8 million. The company has acquired Marcello House from an undisclosed private individual in a deal reflecting a net initial yield of five per cent.

Hotbed’s members invested £2.8 million of equity into the deal with debt provided by KBC Bank. Andy Taylor, Hotbed’s head of property, says Kings Cross is a popular office location and the company is confident it will continue to see strong occupational demand.

Marcello House, which comprises almost 20,000-sq.ft of accommodation, is let to professional qualifications specialist BPP Holdings on a lease that expires in 2018.

Hotbed, which was established in 2002, is a network of private investors that raises between £500,000 and £5 million of equity to invest in a range of sectors.