Trinova Real Estate and Stars REI have agreed to buy 103 Mount Street, a mixed office and retail property located in the heart of London’s Mayfair, in an off-market deal with landlord Meyer Bergman.
The buyers paid an undisclosed sum reflecting a net initial yield of approximately 4%. The UK press put the deal value at around £80 mln (€88 mln).
Meyer Bergman acquired 103 Mount Street in 2015 on behalf of its second value-add closed-ended fund Meyer Bergman Retail Partners II (MBERP II). The 32,000 sq ft (2,970 m2) property now counts a mix of investment firms and asset managers as office tenants, with the ground-floor retail space entirely occupied by Celine, the fashion house owned by LVMH.
During the hold period, Meyer Bergman refurbished the upper floors to create Grade A office space and a new reception, while also negotiating a number of new leases and lease renewals to increase rents and occupancy.
Meyer Bergman has a number of investments in London, including Bond Street House, another mixed office and retail asset, as well as The Whiteley, a £1.5 bn transformation with CC Land of London’s first ever department store into luxury apartments and hotel, which will be operated by Six Senses.
The firm, which has offices in London, Paris and Frankfurt, recently acquired its first German residential-led portfolio comprising 800 residential units and 125 commercial spaces across 60 properties in Frankfurt and the Greater Frankfurt region.
It has also launched its €2 bn last-mile logistics platform Crossbay, which is targeting single-tenant distribution centres close to gateway cities across Europe.
Josip Kardun, chief investment officer at Meyer Bergman, said: ‘There is still strong demand from investors and occupiers for high quality office and retail space in central, high footfall locations and we see good opportunities to reposition existing assets across core European cities as the urban landscapes continue to evolve.’
Edmund Costello, partner at Trinova Real Estate, commented: ‘In these turbulent times we are focused on acquiring assets with good bones, great floor plates and natural light, and with unquestioned location fundamentals. 103 Mount Street meets these requirements and more and has been well managed by Meyer Bergman. We look forward to working hard to enhance the asset on behalf of our partner Stars REI.’
Oscar Boettiger, CEO at Stars REI added: ‘At Stars REI, regardless of market cycles, we are keen to invest in assets that offer immediate optionality and benefit from strong locations and building quality, all of which are sustainable long-term fundamentals.’
Michael Elliott acted for Trinova and Stars REI.
