Swiss Partners Group invests in London

Private markets investment manager Partners Group has invested in an 80% secondary stake in a portfolio of offices located in Stockley Park and Croydon near London and managed by CarVal Investors.

The 350,0000 sq ft (32,500 m2) package comprises four office buildings in Stockley Park and one office building in Croydon that will all be refurbished and re-let. Financial details were not disclosed.

Stockley Park is a 2 million sq ft business park near Heathrow and 15 miles west of central London.

Croydon is an office hub in south London which provides 7.5 million sq ft of office stock at present. It is London’s largest borough by population and has recently become a major area for regeneration recently.

'The refurbished Croydon building therefore represents an attractive proposition to gain first mover exposure to an evolving market that is expected to generate strong interest in future from tenants moving out from central London,' the Zug-based buyer said.

Commenting on the acquisition, Claude Angéloz, partner and co-head Private Real Estate at Partners noted that the deal pricing is at levels 20-30% below replacement cost. 'This will underpin our ability to offer premium quality space at rental levels below the current market once the refurbishments are completed.'

CarVal Investors bought three of the Stockley Park offices from the Universities Superannuation Scheme (USS) in July last year. Financial details were not disclosed but market sources put the price at the time at around £24 mln (€30 mln).