M&G Real Estate has sold Saffron House, a prime office building in one of central London’s key submarkets for £95 mln (€112 mln), representing a 22% increase in value within nine months.
M&G acquired Saffron House for £78 mln in March this year on behalf of a client strategy which is actively targeting value add opportunities in Asia, the UK and Europe. Despite lockdown conditions, M&G was able to complete the purchase within a time frame of less than two months, enabling a swift, efficient change in ownership.
Comprehensively modernised in 2019, the 73,000 sq ft (6,800 m2) asset is located in the sub market of Clerkenwell less than 200 meters from Farringdon station, which connects London Underground and Elizabeth Line services.
Paul Crosbie, who leads M&G Real Estate’s value add initiatives, commented: ‘The acquisition of Saffron House during the UK Lockdown in the first quarter of 2020 highlights our conviction of value offered by the Central London office market during a time of uncertainty. This short hold period and completion of a sale within eight months of our ownership ratifies our conviction that Central London was set for a continued investment recovery and the sale has subsequently delivered attractive risk adjusted returns to our client.’
