Hines has acquired a vacant 103,000sqft office and restaurant building in UK’s capital for its latest value-add European real estate fund.
The manager has invested an undisclosed amount to buy Film House in the West End of London for the Hines European Value Fund 3 (HEVF 3).
The Film House building, located on Wardour Street, which consists of 94,000sqft of office space and 9,000sqft of restaurant space, will be refurbished.
The deal is the third investment for HEVF 3, a fund with a strategy to acquire a value-add portfolio diversified in all major real estate sectors across primary European markets.
Last year, Hines raised an initial €900m for HEVF 3, a fund seeking to raise €1.5bn. At the time, Hines said it expects to make further closings through the year and into early 2023 as required.
Paul White, senior managing director and HEVF 3 fund manager at Hines, said: “The market environment remains challenging, and as a fund we have exercised high discipline over pipeline for the last year, despite raising a great deal of dry powder. When our origination channels do deliver a quality asset in one of our most favoured locations in all of Europe, and with the potential to achieve top ESG credentials – we will invest. Film House is a third flagship acquisition, and we will now apply the full Hines skillset seeking to create additional value here.”
Jake Walsh, managing director, Hines in the UK, said: “Our focus is continuing to deliver high-quality space in superb locations with first-class ESG credentials for occupiers. Film House is testament to this; we have secured the asset in one of the West End’s most sought-after locations against a backdrop of acute undersupply of Grade A next-generation office stock in Central London.
”Given this prized location with unparalleled transport links, it once again demonstrates our conviction in the central London office market for the right prime opportunities.”
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