Hines has sold a circa 1,858m² (20,000ft²) office building in prime Central London following almost 15 years of active asset management. The asset has been sold, on behalf of Hines European Core Fund (HECF), to a joint venture between Heitman and Greycoat. The purchase price was not disclosed.
The five-storey office building at 15 Suffolk Street, near Trafalgar Square and Haymarket in London’s West End, was originally constructed in the 1950s and was acquired by Hines on behalf of HECF in 2007, following a full refurbishment the previous year. The property is fully let to Stonehage Fleming. Since acquiring the asset, Hines has engaged in extensive asset management activities at 15 Suffolk Street.
Simone Pozzato, Fund Manager of Hines European Core Fund, commented: “HECF acquired 15 Suffolk Street in 2007 as a long-term income investment, our first asset acquired in London. Having now completed our extensive asset management activities, this planned disposal crystalises our investment, delivering strong returns for clients as we rotate our portfolio. We retain a pipeline of exciting investment opportunities and remain committed to the UK office market as per our acquisition of 7 Soho Square last year. We are seeing renewed appetite for London offices as employees return to the office, with future-proofed workplaces offering attractive investment prospects and the potential to deliver strong returns to clients. As we review our portfolio, a key element is market timing to ensure we maximise investor returns. We do this by taking an active approach on Core assets, bolstered by the presence of strong local teams on the ground in every country in which we operate. This enables us to manage assets over a long period of time to add additional value to our investments, a strategy we employ across Europe.”