Developer YardNine and Invesco Real Estate have bought an office scheme at 40 and 50 Eastbourne Terrace in London’s Paddington for £110 mln (€124 mln) from Hermes Investment Management and Canada Pension Plan Investment Board.
The acquisition was made on behalf of one of Invesco’s separate account clients.
The first building, 40 Eastbourne Terrace, is an 84,450 sq ft (7,800 m2) office, occupied by oil firm McDermott’s Chicago Bridge & Iron Co subsidiary until March 2021.
50 Eastbourne Terrace has planning consent for a new 94,185 sq ft office and retail scheme with a terrace of seven Mews townhouses.
The two buildings sit directly opposite Paddington mainline station, which will welcome the Elizabeth Line from the end of the year.
Rob Johnston, senior director - UK Transactions at Invesco Real Estate, said: 'With a part income-producing asset and a consented speculative office and residential scheme ready for development in a location set for increased connectivity thanks to Crossrail, this is a compelling investment proposition. We are pleased to be working with the experienced team at YardNine on this exciting deal.'
Maxwell Shand, founding director of YardNine, said: 'This significant West End deal complements our ongoing development of 80 Fenchurch Street with Partners Group which started work on site earlier this year. 40 and 50 Eastbourne Terrace offers an exceptional opportunity to create value through a combination of asset management and development in an appealing submarket that is undergoing significant regeneration.'
Chris Taylor, head of Private Markets at Hermes Investment Management, said: 'This disposal of 40 and 50 Eastbourne Terrace concludes our proactive management of the asset. Capital from the sale will be redeployed into places which are accessible, sustainable and capable of attracting and retaining talent.'
Farmer Capital advised Hermes Investment Management; Michael Elliott & Colliers advised YardNine & Invesco Real Estate.