AXA Investment Managers - Real Assets (“AXA IM - Real Assets”), has announced its acquisition of 182-184 High Holborn, London, on behalf of its clients for a total of approx. €39.4 mln (£29 mln). AXA IM - Real Assets plans to refurbish the asset with Morgan Capital Partners acting as development manager.
This Covent Garden asset is currently fully occupied by a single tenant until Q4 2016. Upon the expiry of the lease, AXA IM - Real Assets will refurbish the property in order to capitalise on the increasing demand for modern office space in this popular midtown location. The property offers considerable refurbishment opportunities including the potential to increase the net internal floor area, the expansion of existing floor plates, the creation of outdoor space and the overall improvement of the building’s public areas and external appearance. AXA is already undertaking a string of refurbishments on its PRADO office complex in Madrid.
Constructed in 1985, the building was refurbished in 2006, and comprises 2,773 m² (29,848 ft²) of office space arranged over basement, ground and five upper levels. Located in Covent Garden at the junction of High Holborn and Smart’s Place, the property is situated directly across from the upcoming redevelopment of 21-31 Oxford Street and near Central St Giles.
This transaction is directly in line with AXA IM - Real Assets’ value-add investment strategy, which is focused on office, retail, logistics, hotel and alternative real estate assets in Europe's key real estate markets. It also builds upon AXA IM - Real Assets’ expertise in sourcing, renovating and developing assets, with a total of €9.9 bln (£7.3 bln) of development projects currently under management, €2.4 bln (£1.8 bln) of which are in the UK, with a particularly strong track record in prime central London.
Through the redevelopment of flagship assets such as Sixty London and 6 Bevis Marks, and the upcoming development of 22 Bishopsgate, AXA IM - Real Assets has been able to attract world class tenants to landmark properties, creating value for its clients, and expects this acquisition will offer the same benefits.
Huw Stephens, head of UK transactions, Real Assets, commented: “This acquisition presents an attractive opportunity within a prime location in London's highly sought-after Midtown to redevelop a core asset, adding value through both an extension of the building's current floor plan and a comprehensive refurbishment. Covent Garden has been experiencing record low vacancies and there is clear demand for Grade A office accommodation from a broad range of occupiers, with the area's popularity expected to receive a further boost from the opening of the nearby Crossrail at Tottenham Court Road in 2018.”
"182-184 High Holborn is another strong addition to our Central London portfolio and takes the completed value of our investment programme to approx. €2.54 bln (£1.87 bln) since the beginning of 2015, further demonstrating our confidence that the robust fundamentals of London’s economy provide opportunities for us to identify, secure and create value for our clients.”
Colliers acted on behalf of AXA IM - Real Assets and Savills acted on behalf of the vendor.
Source: AXA IM - Real Assets
