Hines has acquired a flagship mixed-use retail and office scheme in the heart of London’s West End on behalf of the Hines European Value Fund 2 (HEVF 2). The 37,414ft² building arranged over lower ground, ground and five upper floors is uniquely positioned with dual frontage on to both New Bond Street and Oxford Street (80 New Bond Street & 325 Oxford Street), making it one of the most desirable micro-locations and sought-after properties in central London.
Acquired from Aviva Investors for an undisclosed sum, the building is currently multi-let to four tenants with vacancy available as of August 2020. Hines will embark on a comprehensive reconfiguration and refurbishment to enhance and reposition the asset as flexible, best-in-class, prime retail space on the lower floors, with prime grade A office space above.
Jake Walsh, Director, Hines UK, said: “Oxford Street and Bond Street are among the world’s most iconic and popular retail streets. With the eagerly anticipated adjacent Hanover Square Development completing later this year and the delivery of Crossrail on the way, this location is positioned to capitalize well on localized trends, and will be a unique shop window for any global brand in an unparalleled location.”
Paul White, HEVF 2 fund manager, said: “This is a fantastic flagship acquisition for HEVF 2. It epitomizes the HEVF series philosophy of sharp focus on prime locations in prime markets, and on assets that the Hines in-house skillset can actively improve to create new core real estate. When we are finished with this building it will be a mixed-use trophy in arguably the best retail location in Europe, and offering coveted Mayfair office space. We’re excited, and backing our high conviction in the London opportunity today.”
Gary Sherwin, Head of UK Transactions, Aviva Investors, said: “The fund in which the property is held is increasing its allocations into assets with secure income streams, including pre-let office and hotel investments in Cambridge and Manchester, which are key locations in our real estate investment strategy. We continue to have appetite for prime retail assets in cities with strong economic fundamentals, including those that are attractive tourist and leisure destinations. However, we will sell properties when we can achieve an attractive return for our clients and believe the proceeds can be better redeployed elsewhere, including our strong pipeline of office development opportunities in London. The sale of this asset met our objectives through a competitive bidding process.”