LONDON, 20 April 2015 – CBRE Global Investors, on behalf of a separate account client, has completed the acquisition of 1-5 Howick Place, London SW1. The vendors were Doughty Hanson & Co and Urban & Civic. The asset manager on behalf of Doughty Hanson & Co was Invesco Real Estate.
1-5 Howick Place is a freehold property located next to Westminster Cathedral and close to Buckingham Palace in the Victoria submarket of London’s West End. The scheme was completed in 2012 and offers 172,561 sq ft of accommodation, predominantly grade A offices (81%) with 33 (23 luxury and 10 affordable) residential units on top and a 1,124 sq ft self-contained retail unit on ground floor.
The offices are arranged over lower ground, ground and six upper floors of c. 20,000 sq ft each. The majority of the office space is let to DONG (Dansk Olie og Naturgas) Energy and the other tenants are Giorgio Armani (fashion), Informa (publishing) and Edelman (Public Relations).
The private residential units are let by way of a assured short hold tenancy (1 year term certain). The affordable accommodation is let to Octavia Housing expiring in 2137. The retail unit is let to Iris & June.
Harald Floeer, Director of Portfolio Management, CBRE Global Investors commented: “We have acquired, for our client, a core property investment which will provide secure long term rental income.”
“The Victoria submarket has experienced significant regeneration over the last five years and we see this as a positive factor as the local vicinity continues to undergo improvements. We foresee that rental growth and occupier demand will continue to rise as the attractiveness of the location increases.”
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About CBRE Global Investors
CBRE Global Investors is a global real estate investment management firm with $90.6 billion in assets under management* as of December 31, 2014. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBG). It harnesses the research, investment sourcing and other resources of the world’s premier, full-service commercial real estate services and investment company for the benefit of its investors. CBRE Group, Inc. has more than 52,000 employees in more than 370 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com.
*Assets under management (AUM) refers to the fair market value of real estate-related assets with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice, and which generally consist of investments in real estate; equity in funds and joint ventures; securities portfolios; operating companies and real estate-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real estate market, and its calculation of AUM may differ from the calculations of other asset managers.