Aware Super and UK property group Delancey have acquired the 11-12 Hanover Square office and retail asset in London’s West End from Aviva Investors and Canadian pension investment manager Public Sector Pension Investment Board (PSP Investments).
As previously reported, the prime West End development which provides nearly 35,000sqft of office space alongside 13,000sqft of retail facing onto Oxford Street, was on the market for £160m (€191m).
The 11-12 Hanover Square asset was developed by Aviva Investors in 2017.
Ed Atterwill, head of Central London at Aviva Investors, said: “The sale of 11-12 Hanover Square secures a strong investment outcome and is testament to the continued demand for prime, modern, Central London office space. The yield achieved reflects both the quality of the redevelopment undertaken to futureproof the building, as well as our ongoing asset management throughout our ownership.
“Its sale will enable us to redeploy capital into key conviction sectors, including prime London offices and our growing development pipeline, through to UK single-family housing and urban warehousing.”
Stéphane Jalbert, managing director, real estate investments, head of Europe and Asia Pacific, at PSP Investments, said: “This transaction highlights the strong investor demand for high-quality assets in strategic locations in London given the structural supply and demand imbalance, cutting through a challenging market environment.
“It also reenforces PSP Investments’ continuing commitment to create value investing in the office sector, supporting our mission and mandate.”
Last October, Australian industry superannuation fund Aware Super and Delancey Real Estate extended their partnership by forming a UK property joint venture to invest up to £1bn.
At the time, the companies said the venture will initially focus on prime Central London office properties, taking advantage of increased demand and “significant structural and regulatory change in the market and its repricing”.
The new partnership will also explore opportunities in high-quality retail, logistics and mixed-use properties that are currently undervalued.
The latest venture expanded an existing partnership between Aware Super and Delancey, which includes Aware Super’s 22% ownership in Get Living, a UK build-to-rent developer founded by Delancey.
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