La Française Real Estate Managers (REM) has acquired a corporate headquarters office building located in London's Belgravia area from Grosvenor’s UK Property business for £55 mln (€63 mln).
A short walk from Victoria Station and Sloane Square, the building is located in a mixed-use neighborhood, characterized by a blend of office, Regency and Georgian-style townhouses, apartment buildings, high-end retail and green garden squares.
Designed by London architects Rolfe Judd, the office building was originally constructed in 1992 and provides 62,587 ft2 of flexible office and ancillary accommodation arranged over Lower Ground, Ground and six upper floors. The building is fully let under a 15-year lease expiring in 2038 to an Italian multinational energy provider as their long-standing London headquarters for what has been over thirty years.
Peter Balfour, head of Real Estate UK for La Française Real Estate Managers said, 'As one of the few self-contained headquarters office buildings in Belgravia, the rarity factor, as well as the strong covenant, long unexpired lease term and potential for conversion to other commercial uses, should sustain the long-term value of the investment. Furthermore, as our first acquisition in the West End of London, the asset is complementary to our existing London portfolio.'
La Française Real Estate Managers was advised by RX London, Ashurst on legal, tax and financial aspects and CS2 on technical and environmental due diligence. The vendor, Grosvenor, was advised by JLL.
