AEW Europe acquires City of London building for €32m

AEW Europe has acquired 24-28 Martin Lane, a refurbished office building in the City of London, for a price of £24 mln (€32 mln).

The asset was acquired off-market from Trinova, who sold it on behalf of a high net worth investor.

The 3,000 m2 multi let building will be added to AEW's Europe Value Investors Fund. The property is 100% let to tenants including Business Wire, WH Ireland and The Law Society.

The purchase is the fund’s first UK acquisition brings the aggregate value of its seven assets to £220 mln. AEW’s value-add strategy for the asset will be to renegotiate the leases, the company said in a statement.

Carsten Czarnetzki, Portfolio Manager for AEW Europe Value Investors said: 'Our first UK acquisition for EVI represents exactly the kind of asset we are targeting for the fund. It has a protected downside through a diversified income stream and considerable reversionary upside over the medium term, owing to the solid market fundamentals in the City of London.'

The AEW Europe Value Investors Fund has a target investment capacity of €700 mln and, at second close, has raised in excess of €240 mln. The fund is deploying a core plus and value-add acquisition strategy, focusing exclusively on office assets and concentrated predominantly in Germany, France and the UK.

DTZ and Mayer Brown advised AEW Europe.