King Street Real Estate, the real estate investment arm of King Street Capital Management, and UK private equity firm Arax Properties have acquired the Alban Gate office block in the City of London.
Financial details were not disclosed.
The vendor is believed to be US alternatives giant Blackstone, which reportedly put Alban Gate up for sale for around £300 mln (€353 mln). Blackstone purchased the building in 2014 from another US asset manager, The Carlyle Group, in a deal reflecting a yield of 6%.
The 22-storey, 382,000 square foot (35,500 m2) Grade A office building straddles London Wall and is located between Farringdon, Moorgate, St. Paul’s and Barbican stations. The property underwent a major refurbishment in 2014 by its principal tenant JP Morgan.
David Walch, partner of King Street Capital Management, commented: ‘We are excited to have completed the purchase of Alban Gate, a fully leased office building in an attractive location, and look forward to working alongside our trusted partner in Arax.’
‘Alban Gate is a notable London landmark in a prime location, offering impressive, flexible office space and with an excellent leasing track record. We believe this location will benefit significantly from infrastructure and local environment improvements over the life of our business plan,’ said Giles Morse, partner at Arax Properties.
King Street Real Estate and Arax were advised on the deal by Ropes & Gray LLP.