Hines has bought a mixed-use retail and office scheme in London’s West End on behalf of its European value-add fund.

The manager’s Hines European Value Fund 2 (HEVF 2) acquired the 37,414sqft 80 New Bond Street & 325 Oxford Street building from Aviva Investors for an undisclosed sum.

The building is currently multi-let to four tenants with vacancy available as of August 2020.

Hines expects to refurbish and reposition the asset.

Jake Walsh, director, Hines UK, said: “Oxford Street and Bond Street are amongst the world’s most iconic and popular retail streets.

”With the eagerly anticipated adjacent Hanover Square Development completing later this year and the delivery of Crossrail on the way, this location is positioned to capitalise well on localised trends, and will be a unique shop window for any global brand in an unparalleled location.”

This latest acquisition is the third for HEVF 2, bringing the amount of equity allocated by the fund to €300m.

The HEVF 2 fund raised €637m at the first closing in December 2019, exceeding 50% of the €1.25bn total fund target. With leverage, the fund is expected to have a €3bn purchasing power.

The predecessor HEVF 1 fund raised €721m in August 2018.

Paul White, HEVF 2 fund manager, said the latest acquisition epitomises the HEVF series philosophy of focus on prime locations in prime markets, and on assets that the Hines in-house skillset can actively improve to create new core real estate.

“When we are finished with this building it will be a mixed-use trophy in arguably the best retail location in Europe, and offering coveted Mayfair office space.”

Gary Sherwin, head of UK transactions, Aviva Investors, said the fund in which the property is held is increasing its allocations into assets with secure income streams, including pre-let office and hotel investments in Cambridge and Manchester, which are key locations in Aviva’s real estate investment strategy.

“We continue to have appetite for prime retail assets in cities with strong economic fundamentals, including those that are attractive tourist and leisure destinations.

”However, we will sell properties when we can achieve an attractive return for our clients and believe the proceeds can be better redeployed elsewhere, including our strong pipeline of office development opportunities in London.”