M&G Real Estate has acquired a £132m (€153.6m) building in London’s West End on behalf of an Asian separate account mandate.
The manager has bought Ryder Court a 75,000sqft, five-storey office located in St James’s and is currently multi-let to various tenants in the financial and hospitality industries.
M&G said it will invest additional capital to upgrade the reception area, introduce cycle storage and provide shower facilities.
Paul Crosbie, who leads M&G’s UK value-add activities, said: “Opportunities to acquire prime assets such as Ryder Court in prestigious submarkets like St James’s are rare. Whilst the rise of homeworking has clearly accelerated, demand for quality offices in prime locations is holding up well.
“Furthermore, occupiers and investors are more discerning, focusing on sustainability, wellbeing and amenity. We expect an increase in demand for green assets, which will command premium rents and pricing.”
TeckLeong Kee, fund manager, M&G Real Estate Asia, said: “The focus on sustainability from occupiers and investors alike has led to a rise in demand for ‘green’ assets which are commanding premium rents and pricing and a number of green buildings have already been certified in London and other major cities. We continue to invest to future proof our assets for our tenants.
M&G said it has made three acquisitions on behalf of the Asian separate account mandate which invests in core-plus to value-add opportunities.
To read the latest edition of the latest IPE Real Assets magazine click here.