US investment firm Lone Star Funds, through an affiliate of Lone Star Real Estate Fund VII, is acquiring a UK office asset from Derwent London for £110.5m (€127m).
Located in the Fitzrovia sub-market of London’s West End, the 107,000sqft 90 Whitfield Street asset comprises 99,000sqft of office space and 8,000sqft of ground-floor retail.
Derwent London said that the sale price represents a capital value of approximately £1,100 per sqft and a 5% net initial yield, slightly below the December 2025 book value.
The Fitzrovia freehold property was developed in 2007 and currently maintains an 88% occupancy rate.
Jérôme Foulon, global head of commercial real estate at Lone Star, said: “We have strong conviction in the central London office market and continue to believe with the right asset management strategy a well-positioned London West End property such as 90 Whitfield provides meaningful embedded upside.”
Jeremie Goldsztain, senior managing director and head of Europe real estate at Lone Star, said: “This is a high-quality asset with strong underlying fundamentals given its Fitzrovia location and amenities. We believe that there are significant opportunities to further enhance the rental tone and institutional desirability by deploying further capital into refurbishment and sustainability upgrades.”
Paul Williams, chief executive of Derwent London, said: “Following the successful conclusion of a number of recent lettings, we took the decision to dispose of this relatively mature property. Capital recycling is a key component of our business model and the proceeds have been earmarked for reinvestment into higher returning opportunities.
“These include capital expenditure at our major projects, where we forecast attractive internal rate of returns, as well as other alternative accretive uses
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