Redefine International has announced that it, jointly with the Aegon UK Property Fund, exchanged contracts on the sale of 16 Grosvenor Street in Mayfair, London for a total of £35.6m (€48.8m) with a private investor.
16 Grosvenor Street is one of the 19 assets included in the transformational £490m (€671.8m) Aegon UK portfolio acquisition from the Aegon UK Property Fund, as announced on 7 September 2015. The Transaction is to be acquired in two tranches; Tranche One, comprising nine properties, is due to completed around 1 March 2016. The 15,709ft² (1,459m²) prime office building forms part of the second tranche, at an apportioned purchase price of £29m (€39.8m).
Mike Watters, CEO of Redefine International commented: "While this is a prime asset, it is also low-yielding and, as such, sits outside the immediate, income-focused strategy for Redefine International.
“The disposal of 16 Grosvenor Street represents just one of a number of significant value enhancing opportunities that the Aegon UK Portfolio potentially holds for the Company, and progress to date on the delivery of asset management initiatives has exceeded our initial expectations.
“The early realisation of some of these opportunities is very encouraging and is testament to the strong and exciting foundation on which this transformational deal has put the business, and from here we are confident that we can continue to drive attractive shareholder value."
