The asset was acquired by LGIM Real Assets in January 2015 for €76m (£67m) as the first purchase for its office joint venture partnership between Legal & General Capital and Dutch pension fund manager, PGGM. The sale offers an attractive return against the Partnership’s investment objective to deliver an annualised net IRR of 10%.
Located at the eastern gateway to Carnaby Street, the property occupies a strategic island site at the junction of two key Soho thoroughfares and will benefit significantly from the opening of both the Tottenham Court Road and Bond Street Crossrail stations in 2018. The building provides 54,100 ft² of office accommodation, eleven apartments and a large basement car park.
Nigel Fuller, Senior Fund Manager at Legal & General, said: “This is a fantastic deal for the Partnership and testament to the strength of our central London office strategy.Through clever stock picking and active asset management, the team has delivered an exceptional outcome for our investors and strong returns. We will now seek to deploy this capital into other market opportunities where we see further value.”