The Core Plus Fund CPP IV, advised by pan-European real estate investment manager Tristan Capital Partners, has purchased No.1 Stratford Place, a Grade A office building at the entrance to Westfield Stratford City, from Westfield PLC.
The property was developed in 2011 and comprises a single office block which sits above the eastern part of the Westfield Stratford shopping center, adjacent to Stratford Station. The building provides of 11799.5 m²
Grade A office accommodation over six floors and is let to high-quality covenants including Network Rail, London Legacy Development Corporation and Coral Racing at an average rent of £33.50psf. Half of the 8th floor is currently vacant, equivalent to approximately 929 m²
The £70 mln (approx. €96 mln) acquisition by Curzon Capital Partners IV (CCP IV) is the first transaction for the Fund, which held its first close in late 2014, attracting approximately €300 million in commitments.
In addition to five world class sporting venues, Stratford is home to Westfield Stratford City, Europe’s largest urban shopping mall and East Village, London’s largest Private Rented Sector Village. Outline planning permission has been granted to provide five new neighborhoods, including 5,000 new homes. With the arrival of Crossrail in 2018, it is predicted that Stratford Station will be busier than London’s Victoria Station by 2020.
Peter Mather, Managing Director of Investments at Tristan Capital, said: “The area [Stratford], which benefits from strong retail and amenity provision, a growing residential offer and excellent transport links, will benefit from strong rental growth affecting most office locations across London, driven by limited Grade A supply, lack of speculative development and the erosion of existing stock through office-to-residential conversions.”
Source: Tristan Capital Partners