IVG IF inks first club deal in UK with London office buyer

Germany's IVG Institutional Funds (IVG IF) has acquired an office property at 11 Baker Street in London from AUB (Baker street) Development Ltd, a subsidiary of Bahraini bank Ahli United.

The transaction marks IVG IF’s first club deal in the UK. Financial details were not disclosed.

The core property is located in London’s West End, within walking distance from Oxford Street and the Bond Street tube station.

The seven-floor building was completed in 2011 and was designed by architects Squire and Partners. It has a lettable space of around 6,500 m2 and is fully let on long-term leases. The main tenant is US investor Pimco, which has its European headquarters in the building. There are also four retail units in the asset.

IVG IF was advised by CMS Cameron McKenna and Colliers International.

IVG IF is the third-party asset management arm of German property Group IVG. The Bonn-based firm announced plans last week to spin off a €3 bn core portfolio of assets into a separate company.

The move, which is seen as the next strategic step to restore the Bonn-based company's capital market viability, will create a new unit focused on the group's own portfolio, replicating the structure already used for the business with structured real estate products for institutional investors (IVG Institutional Funds) and the caverns business (IVG Caverns).