Pontegadea, the property investment vehicle of Spanish retail billionaire and Zara owner Amancio Ortega, has reportedly been selected as preferred bidder to acquire the Adelphi building in London's West End for just under £600 mln (€680 mln).
According to UK press reports, Pontegadea is close to agreeing terms to buy the Adelphi building from landlord Blackstone for a yield of 3.75%.
The US asset management giant mandated Knight Frank and Eastdil Secured to sell the 330,000 sq ft (30,660 m2) office building in April after renovating it and bringing it to full occupancy, with tenants including music streaming service Spotify and The Economist.
The deal comes within weeks of Pontegadea losing out on another London office building. Earlier this month Ortega's company missed out to sovereign wealth fund, National Pension Service of Korea in the race to acquire Goldman Sachs’ London headquarters worth over £1 bn.
Pontegadea owns €2.6 bn of real estate assets in London.