Saudia Arabian Shari’ah compliant investor Sidra Capital has acquired a recently refurbished London office for £74m (€82.8m).
The Bower in Stockley Park, West London, was sold by Clearbell Property Partners II, managed jointly by Clearbell Capital and Patrizia.
The building is part of a 151,000sqft business park 3.5 miles north of Heathrow Airport and close to the M4 motorway.
It is occupied by Canon Europe which has a 10.5-year lease with a break at 5.5 years.
The asset was acquired in 2015 and has been refurbished and turned into a grade-A office with BREEAM Excellent rating and an EPC A rating.
A new building management system and solar panels on the roof have led to an almost 50% reduction in energy consumption.
Hani Baothman, chairman of Sidra Capital, said: “The property compliments our ESG strategy and our portfolio of quality assets leased to quality tenants.
“Our ability to complete the transaction in the current economic environment demonstrates our long-term commitment to the UK real estate market and our ability to offer vendors execution certainty.”
Dominic Moore, head of asset management and ESG director at Clearbell, said: “Now more than ever, businesses want two things from their offices: high specification and strong sustainability ratings – and they don’t want to compromise on either.
“The ESG credentials and specification of The Bower makes it a strong institutional building. Add in the excellent Canon covenant and the lease length and the asset provides a sound investment in a turbulent market.”
Phil Irons, managing director of transactions at Patrizia, said: “This deal is the culmination of a business plan to drive the value of The Bower through a combination of ESG-linked capex enhancements and a leasing strategy to attract a world-renowned brand, which we have successfully achieved in Canon.
“Despite challenging market conditions, our successful exit validates our strategy and is an encouraging sign that buildings with strong ESG credentials will continue to attract strong investor interest.”