Hines snaps up London West End asset for mixed-use development
The flagship value-add property fund for Hines in Europe has bought an asset in London’s West End for a mixed-use project.
The €720m Hines European Value Fund (HEVF) acquired 354 – 358 Oxford Street from Transport for London for an undisclosed sum.
Hines said the asset, located above the Bond Street underground station entrance, will deliver retail space across the basement, ground and first floors. Above the retail element, Hines will create residential accommodation across the four upper floors.
Jake Walsh, the director of Hines UK, said: “Securing one of the most sought-after prime locations in the West End of London represents a milestone transaction for Hines, demonstrating our capability to source and convert the most attractive opportunities in an incredibly competitive market.”
Paul White, HEVF fund manager, said: “The acquisition of 354-358 Oxford Street is another example of HEVF’s commitment to focus only on the best micro-locations within its target markets.”
The mixed-use components of this new project offer the fund strong downside protection during uncertain macroeconomic times, White said.
“HEVF is thrilled to acquire its first asset in London and looks forward to acquiring additional compelling value add assets in the city in the near future.”
The deal is HEVF’s fifth acquisition in the last 12 months. The previous deals were made in Stuttgart, Copenhagen and Barcelona, along with a fourth acquisition in exclusivity.
Graeme Craig, the director of commercial development at Transport for London, said: “We are delighted to have concluded this transaction at a prime West End location, which will provide a significant return to reinvest in the transport network.
“Our investment strategy will continue to see us undertaking a small number of targeted disposals whilst we concentrate our own development activity on Build to Rent in outer London to generate ongoing revenue as well enabling us to provide high levels of affordable housing.”