AXA Real Estate has purchased an office building in central London for redevelopment for £32 mln (€44.3 mln).
AXA Real Estate has purchased an office building in central London for redevelopment for £32 mln (€44.3 mln).
The asset manager plans to carry out a comprehensive refurbishment of St Andrews House, including the addition of a ninth floor to increase the total floor area to more than 5,000 m2. Morgan Capital Partners has been appointed as development manager.
The building, located south of Holborn and north of Fleet Street near the New Street Square legal district, was acquired from a fund managed by CBRE GI.
Development work is due to begin in the third quarter of 2015, with completion expected in the fourth quarter of 2016.
In a statement, AXA noted that demand was ‘significantly exceeding supply in the area due to both a restricted development pipeline and record low vacancies, which AXA Real Estate expects to capitalise on for the benefit of its clients.’
Martin Perrott, senior transactions manager, said: ‘Once completed, the asset will provide much-needed Grade A office accommodation designed not only to appeal to traditional City occupiers, who may be seeking improved premises for their businesses, media tech companies, many of which have recently taken space in the area.’
Colliers International advised AXA Real Estate and Morgan Capital Partners, while Cushman & Wakefield acted for CBRE GI.
AXA Real Estate has around €8 bn of development projects under management across eight European countries, including €1.4 bn in the UK. The company had a total of €54 bn of assets under management at end-2014.
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