Global investor AXA Investment Managers - Real Assets (AXA IMRA) has purchased a west London office conversion from Legal & General for £56.6 mln (€66.3 mln).
The Warwick Building, a former Victorian warehouse located in the Kensington Village office campus, was acquired on behalf of the AXA CoRE Europe Fund. The 7,386 m2 property was divested by L&G on behalf of the Bishopsgate Long Term Property Unit Trust.
'The fully let Warwick Building is a distinctive and highly appealing property which is part of a landmark scheme in a popular, affluent and extremely well connected area of London,' commented Huw Stephens, head of UK Transactions at AXA IMRA. 'AXA IM - Real Assets remains committed to substantial UK property investment and this acquisition is further evidence of the long-term attraction of London.'
The Warwick Building is fully let and has potential for further asset management initiatives, plus planning consent to add two further storeys to provide up to 25 new residential units.
'The successful execution of our business plan for this property, realised through the positive settlement of the 2016 rent review, coupled with the subsequent sale, are testament to the skill of our asset management platform and these initiatives have enabled us to deliver strong returns for our client,' said Will Edwards, senior fund manager of L&G’s Bishopsgate Long Term Property Unit Trust.
The AXA CoRE Europe Fund is the flagship pan-European open ended real estate fund of AXA IMRA, and reached €800 mln of total commitments by the end of 2016.
Savills advised AXA IMRA, whilst Knight Frank advised Legal & General.
