The real assets arm of investment firm Eurazeo is investing €80m to buy a London office complex in partnership with Arax Properties.
Eurazeo Patrimoine said the duo have agreed to buy the 194,000sqft Johnson Estate in Farringdon from Derwent London. The asset comprises an office complex of 4 adjacent buildings, including The Johnson Building.
The acquisition of the Johnson Estate is the second investment of the partnership set up with Arax Properties in March 2019 with the acquisition of Euston House office asset in central London.
The Johnson Estate is 94%-leased.
Renaud Haberkorn, managing partner of Eurazeo, head of Eurazeo Patrimoine, said: This second acquisition in London reflects our capacity to source opportunities in complex environments and our strong convictions in the London real estate market which we believe offers today very interesting value opportunities.
“The Johnson Estate features significant upside potential associated with a safety net arising from day-1 income generation and we will endeavour to capture rental reversion in the coming years for this well-connected property which is ideally located for companies from the fast-growing TMT sector.”
Giles Morse, partner of Arax Properties, said: “As with Euston House, the Johnson Estate offers the joint venture the ability to capture the momentum of a burgeoning submarket with improving infrastructure whilst having excellent downside protection. We look forward to another successful partnership.”
To read the digital edition of the latest IPE Real Assets magazine click here.