AXA Real Estate Investment Managers said on Tuesday that it has created a 50/50 joint venture partnership with an unnamed large third-party international client to purchase a 398,000 sq ft (37,000 m2) office development at King's Cross, London, from developer BNP Paribas Real Estate.
AXA Real Estate Investment Managers said on Tuesday that it has created a 50/50 joint venture partnership with an unnamed large third-party international client to purchase a 398,000 sq ft (37,000 m2) office development at King's Cross, London, from developer BNP Paribas Real Estate.
The transaction, which AXA is carrying out on behalf of a client, amounts to around EUR 400 mln, ranking it as one of Europe's largest forward funding transactions since the onset of the financial crisis.
Designed by architects Jean-Michel Wilmotte, the scheme comprises an 11-storey building which is 55% pre-let to BNP Paribas' subsidiaries on a 15-year lease. It also offers around 13,000 sq ft of retail and café space as well as storage facilities and accommodation for a fitness centre. Construction of the building, which is targeting a BREAAM Excellent sustainability rating, is expected to commence at the beginning of 2013, with delivery in Q4 2014.
The scheme forms part of the 67-acre King’s Cross Central development, one of Europe's largest regeneration projects, which is planned to deliver 8 million sq ft of mixed-use space into the Central London district. BNP Paribas Real Estate will be letting agents.
Commenting on the acquisition, Anne Kavanagh, global head of asset management at AXA Real Estate, said: 'This acquisition demonstrates our ability to find value in the competitive London market and confirms our ability to source investment opportunities around which we can establish joint ventures between our clients.'
King's Cross is BNP Paribas' first development project in London.
