Savills Investment Management has completed the purchase of 125 Shaftesbury Avenue in London from Almacantar for £267 mln (€296 mln).
Savills IM concluded the transaction on behalf of a club of Korean institutional investors managed by Vestas Investment Management.
The building, located in central London’s Soho district, was built in 1982 and consists of 190,000 sq ft (17,650 m2) of office, retail and ancillary space over 11 floors, including ground and basement.
The office space in the property, consisting of 140,000 sq ft, is undergoing a comprehensive refurbishment and is leased to WeWork for a term of 20 years. The 37,000 sq ft of retail space is let to five tenants, which include Made.com and Nisbets.
'The building is a substantial freehold in the West End of London, which is well let and will undoubtedly benefit from the opening of the Elizabeth Line at Tottenham Court Road in 2019. We look forward to managing this building as the location develops and continuing our partnership with Vestas and its investors in future transactions,' said Alistair Ennever, transaction manager at Savills Investment Management.
Savills IM and Vestas Investment Management are also preparing to launch a discretionary fund for Korean institutional investors to acquire European logistics and office properties in Q1 2019.
The companies declined to provide details of the planned equity raising. 'Talks with investors are on-going regarding equity commitments. We will announce further details shortly,' a company spokesperson said.
Ashurst advised Savills IM and Vestas while Cushman & Wakefield, CBRE and Mishcon de Reya acted for Almacantar.