Cornerstone Real Estate Advisers announced that it has purchased 40 Gracechurch Street, a Grade A office building in Central London, for £94 million (approx. €107.6 million) on behalf of a new separate account client.
The property, which was developed in 2010 by the vendor, Arab Investments, comprises 122,850 ft² of Grade A office space across eight floors, as well as a restaurant on the ground and lower ground floors. The property is currently 42% let, with five vacant floors, three of which have terraces, providing an opportunity to capitalize on the improving tenant demand now coming through in the City, at a point when grade A vacancy is falling below its long term equilibrium level.
This transaction is the first acquisition undertaken on behalf of a client who has given Cornerstone a mandate to invest into Central London office markets with a particular focus on properties which offer the opportunity to add value in the short term through active asset management.
Nick Pink, Chief Investment Officer Europe, said: “This is a fantastic first acquisition for our new Central London initiative and is indicative of the kind of value add proposition we are targeting for our client in conjunction with some rather more core investments in the hot spots we have identified across the capital.”
Darren Hutchinson, Director Fund Management at Cornerstone Europe, commented: “To secure this property is testament to Cornerstone’s ability to source high quality investments on behalf of our clients. We are excited by this opportunity to take advantage of the current increase in occupier demand in the City. Tenant demand in the City has notably improved this year and we are confident that we will be able to position the building to enhance occupancy in the near term, particularly given the asset’s prime location and Grade A quality.”
Cornerstone was advised by GM Real Estate and Hanlon Bennett, and Savills advised the vendor.