Grosvenor sells London office scheme to Pontegadea

Grosvenor Fund Management has completed the sale of Almack House, an office building in the heart of St James's in central London, to Spanish Group Pontegadea, the investment arm of Zara's owner Amancio Ortega.

Financial details were not disclosed.

Grosvenor Fund Management acquired Almack House in 1999 as one of the seed assets for its London Office Fund. The 99,225 sq ft (9,200 m2) building, arranged over the lower ground, ground, and seven upper floors, was extensively refurbished in 2009. The building is fully let to four high-quality tenants, including Warburg Pincus and Xstrata.

Commenting on the sale, Grosvenor's fund manager Scott Rowland said: 'The London Office Fund strategy is to acquire high-quality prime central London office assets that we can apply our asset management skills to, to maximise value for investors. The sale of Almack House means the fund is now well positioned to take advantage of acquisition opportunities as and when we see them in the market.'

Giles Wintle, Chief Investment Officer, Grosvenor Fund Management added: 'The London Office Fund is currently Grosvenor Fund Management’s longest running fund and has provided investors with strong returns since it was established. Having owned Almack House for over 15 years, it was the right time to offer this asset to the market and crystalise returns for our investors.'

Grosvenor Fund Management’s London Office Fund portfolio now comprises three assets: Belgrave House in Belgravia, 10 Grosvenor Street in Mayfair and Fleet Place House on Holborn Viaduct.

Grosvenor Fund Management currently has close to €4 bn of assets under management, including a portfolio of 32 historical buildings in the heart of Lyon’s city centre in France, Liverpool One in the UK and Skarholmen Centrum shopping centre in Stockholm, Sweden.

JLL acted on behalf of Grosvenor Fund Management.