Standard Life Investments has acquired 33 Foley Street in London’s Fitzrovia from Kier Property, in a significant sale and leaseback deal. The purchase price was undisclosed.
Kier is currently undertaking a full refurbishment and extension of the 34,000 ft² building, which will create a total of 42,000 ft² of prime Grade A office space. As part of the purchase, Standard Life Investments has secured a 25-year lease, with inflation linked rent reviews, to Kier Group who will relocate its Kier Property office from Cavendish Place in January 2018.
Formerly occupied by the BBC, 33 Foley Street was originally built as a printing works in the 1920s.
Richard Marshall, Fund Manager of the Standard Life Investments Long Lease Fund said: “This transaction is underpinned by strong fundamentals; Foley Street is a high-quality headquarters office in an area of Central London with long term growth potential, following the development of the new Crossrail station at Tottenham Court Road. This transaction provides an attractive cash flow for the Long Lease Fund, assisting investors in matching their long-term liabilities.”
Leigh Thomas, Managing Director, Kier Property, said: “We are delighted to confirm this sale to Standard Life Investments. When work is completed, the new office will provide accommodation for Kier Property, as well as other Kier Group businesses.”
Montagu Evans acted for Standard Life Investments, while Kier Property were represented by Cushman & Wakefield and Michael Elliott.
