Developer Hub and sustainable investment firm Bridges Fund Management have acquired 150 Minories, a commercial building in Aldgate, London for £39 mln (€45 mln).
They will convert the building into a residential scheme, adding to their portfolio of repositioned assets across the UK.
This is the twelfth and largest deal for the pair, and the latest in their office-to-residential strategy. HubCap, owned by Hub, currently has five projects under development between London and Edinburgh with a combined value of £330 mln (€378 mln).
Bridges and Hub have worked on numerous "living" sector deals together over the last decade, with a combined value of over £1 bn (€1.1 bn).
The partners chose 150 Minories due to its prime location in a vibrant, evolving neighbourhood, between the City and the bustling East End. The scheme will add to Hub and Bridges' successful track record of delivering well-designed, sustainable, and community-led living schemes.
Like the scheme at 45 Beech Street, purchased for £30 mln (€33 mln), this workplace conversion will involve retaining the frame of the building and reinforcing its foundations, which will save 30% embodied carbon compared to an equivalent new build.
Miles Keeley, principal at HubCap, said: ‘There is a chronic need for more good quality, sustainable housing in the City of London so that people can continue living and working there. 150 Minories will deliver up to 300 new homes to help meet this need. This part of Aldgate is poised for major revitalisation, and we look forward to playing our part through this transformative development. HubCap’s strategy is to identify sites suitable for conversion that will help to reanimate pockets of cities in need of an injection of life.’
Simon Ringer, head of property funds at Bridges Fund Management, commented: ‘This acquisition continues our focus on needs-driven real estate sectors where there is growing occupational and investment demand. Over the last decade, we’ve developed thousands of highly sustainable lower-cost homes in areas where there is a clear shortage of quality housing. Clearly over the last few years, there have been significant changes in the way we live and work, which has left a number of buildings in fantastic locations that are ripe for repurposing and refurbishment.’
JLL, Addleshaw Goddard, DP9, and Morris&Co advised HubCap on the acquisition of 150 Minories. HK London and Michael Elliot advised the seller.