A joint venture between UK property manager Helical Bar and hedge fund The Baupost Group have sold an office development in London to value-add investor Ashby Capital for £102.4 mln (€145 mln).

A joint venture between UK property manager Helical Bar and hedge fund The Baupost Group have sold an office development in London to value-add investor Ashby Capital for £102.4 mln (€145 mln).

The development, One Bartholomew Close, comprises 211,000 sq ft (19,600 m2) of office space over one ground and 11 upper floors with average floor plates of around 19,300 sq ft, a large terrace on the 10th floor and 388 bicycle spaces.

Net proceeds from the sale will be used to return equity to the joint venture partners and to finance the final phase of the residential aspect of the scheme.

Gerald Kaye, director of Helical Bar, said: ‘This deal with Ashby represents a further milestone at our major Barts Square mixed-use development and enables us to deliver a high quality office building in 2018 when there is anticipated to be a shortage of supply in central London. It also allows us to redeploy capital into the final phase of the residential aspect of the scheme.’

Demolition will commence later this year when the existing occupier vacates, and the new building is due to be completed in summer 2018.

Ashby will finance the development costs and when the building is completed the joint venture will receive a profit share payment. Helical Bar will stay on as development manager for delivery of the project.

One Bartholomew Close is part of Helical’s Barts Square mixed-use development comprising a further 35,000 sq ft of office space in two buildings, 23,100 sq ft of retail/restaurant accommodation and 236 residential units as well as public realm improvements.

Peter Ferrari, CEO of Ashby, commented: ‘The acquisition of One Bartholomew Close, adjacent to our existing holding of 200 Aldersgate, increases our ownership in this fast improving area of the City which will be further enhanced with the completion of Crossrail in 2018.’

The Helical and Baupost joint venture was advised by CBRE and Clifford Chance. Ashby was represented by Savills and Allen & Overy. The joint letting agents will be CBRE, Savills and Ingleby Trice.

Ashby Capital is a privately backed real estate investment advisory company which focuses on identifying, acquiring and adding value to office, retail and residential properties in prime locations across Central London.

US hedge fund Baupost Group opened its first international office in London in 2011 to take advantage of investment opportunities in the European commercial property market following the sovereign debt crisis.