AXA Investment Managers - Real Assets has marked its entry into the UK private rented residential market with the acquisition of Dolphin Square in London from Westbrook Partners.

Media reports in January indicated that the asset in Pimlico, which represents UK’s largest single private residential complex on sale, was on the market for £850m (€934m).

IPE Real Assets understands that the amount paid by AXA IM - Real Assets is significantly below the £850 reported price tag.

Dolphin Square, comprising 1,233 units on a 7.5-acre site, provides 795,990sqft of residential accommodation, commercial and amenity space spread across 13 individual houses centred around a 3.5 acre landscaped garden square.

AXA IM - Real Assets said the entire complex is managed by an onsite management company, which has been acquired as part of the transaction.

The estate stands in good condition but presents an opportunity for a wholesale refurbishment over the long-term, AXA IM - Real Assets said.

John O’Driscoll, European head of transactions at AXA IM - Real Assets, said: “Through this transaction, we have secured a rare opportunity to acquire a first-class, large scale and iconic residential asset in one of London’s most sought after areas as a long term investment on behalf of clients.

“We are excited to be acquiring this asset and the potential that can be unlocked over the long term; London’s private rented market remains significantly undersupplied and, with over €20bn invested into the sector globally, residential assets classes which are supported by structural demographical drivers remain one of our high conviction calls.”

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