Alternative credit investment firm Alinor Capital Management and Lugus Capital have acquired a vacant office building in London for a refurbishment and repositioning project, which is expected to have a gross development value in excess of £70m (€80.9m).
Alinor and the UK and Irish real estate investment firm have acquired Garden House in London, in partnership with Pillar Development Management.
The asset, situated on Throgmorton Avenue, previously formed part of Deutsche Bank’s London Wall campus. The office currently provides around 54,000sqft of gross internal area.
The transaction marks Alinor’s third real estate investment this year, following its acquisitions of 1 Tony Wilson Place in Manchester and The Bond in Glasgow.
For Lugus, the deal represents its first major London office deal as the firm expands its existing €900m portfolio with UK assets.
Alex Mahler, co-founder and partner at Alinor Capital Management, said: “This transaction reflects our continued focus on acquiring high-quality real estate assets in resilient urban markets.
“We see continued demand for best-in-class, well-connected and sustainable workspaces and look forward to partnering with Lugus and Pillar to transform Garden House and create long-term value for occupiers and investors alike.”
James Ghent, managing partner of Lugus UK, said: “Garden House is an important marker for us as we deliver against our stated ambition to grow our UK investment footprint. It reflects our focus on prime assets in prime locations, where strong occupational demand and structural supply constraints can support high-quality real income for our investors.
“We are continuing to see opportunities both in London and in Dublin and are selectively pursuing opportunities to add to our portfolio. We look forward to working with Alinor and Pillar to deliver our first landmark project together in one of London’s most connected and established submarkets.”
Tom Smallbone, director at Pillar Development Management, said: “We are pleased to have kicked off our partnership with Lugus on Garden House and look forward to working with them alongside Alinor to deliver the project.”
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