LONDON 16 July 2020 – CBRE Global Investors and King Street Real Estate GP, L.L.C. (“King Street Real Estate”), in partnership with Arax Properties, today announced that they have pre-let 153,000 square feet at 280 Bishopsgate in the City of London to leading global law firm Baker McKenzie on a 15-year term. The remaining available 108,000 square feet is being delivered to a hybrid-exposed Cat A, to appeal to a broad base of occupiers.
The building was acquired with vacant possession in December 2019 on behalf of CBRE Global Investors’ value-add fund, Europe Value Partners 2 (“EVP 2”), along with funds managed by King Street Capital Management (“King Street”) and Arax Properties. The partnership is in the process of a comprehensive refurbishment to be completed in Autumn 2021.
The scheme incorporates a unique, 7,800 square foot MoreySmith-designed dual reception spanning the full length of the building and connecting Bishopsgate with the green spaces of Bishops Square, Spitalfields. Private terraces are provided on every floor with lift access to the extensive communal roof gardens and on-site Wellness Suite. In recognition of this, 280 Bishopsgate expects to become only the second WELL Gold certified building in London alongside CyclingScore and WiredScore Platinum.
The scheme retains the existing structural frame resulting in a significant embodied energy saving and incorporates extensive environmental and sustainability improvements targeting energy consumption, waste management and air quality. The scheme is designed to achieve BREEAM Excellent/Outstanding.
“We are very excited to be moving to this new, modern and eco-friendly space in which we can collaborate and interact with each other and with our clients.” said Alex Chadwick, Baker McKenzie’s London Managing Partner.
“This value-add opportunity is in line with EVP 2’s key investment strategy of repositioning to core. The prime location and lack of Grade A space against strong occupational demand makes this a very exciting project and one we look forward to delivering in 2021.” said Christina Forrest, Fund Manager, EVP 2, CBRE Global Investors.
“Along with our trusted partners, CBRE Global Investors and Arax Properties, we are thrilled to welcome Baker McKenzie and its employees to their new offices where they will enjoy the convenience of a truly dynamic environment.” said David Walch, Partner at King Street.
Giles Morse, Partner, Arax Properties added: “Arax is delighted to have successfully pre-let 60% of this landmark refurbishment within a little over six months from acquisition. We look forward to delivering a market-leading office and welcoming Baker McKenzie to the building.”
The agency team is Cushman & Wakefield, CBRE and BH2. Further information can be found at helloduo.london.
CBRE Global Investors is a leading investor in offices, with a total AUM of €8.5 billion in EMEA at 31 March 2020. This comprises a total of 980,000 square metres across ten countries, including the United Kingdom, the Netherlands, Germany, Spain, Poland, Italy and France. The office sector platform led by John Mulqueen, Head of Offices EMEA, executes a wide range of investment strategies from core to value add across the region.
– ENDS –
About CBRE Global Investors
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE). It harnesses the research, investment sourcing and other resources of the world’s largest commercial real estate services and investment firm (based on 2019 revenue) for the benefit of its investors. CBRE Group, Inc. has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 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 assets-related investments 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 assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers.
About King Street
King Street Real Estate, the real estate investment arm of King Street Capital Management, manages several opportunistic real estate funds, which invest in equity and debt in dislocated markets and complex situations. Over the past 10 years, King Street has invested approximately $2.5 billion in nearly 50 direct real estate transactions across a wide range of sub-sectors primarily in the United States and Europe.
King Street is a global investment management firm founded in 1995, with over $18 billion of assets under management across closed-end real estate, global and European hedge fund strategies, and CLOs. With offices in New York, London, Singapore, Tokyo and Charlottesville, VA, King Street focuses on complex, stressed/distressed, out-of-favor and special situations and employs a fundamental, research-intensive approach with an emphasis on absolute return and downside protection.
About Arax Properties
Founded in 2006, Arax is a private real estate investment and asset management company. Arax is headquartered in London and is active in direct real estate and real estate-backed operational businesses across Europe, also having offices in Paris, Berlin and Luxembourg. Arax establishes joint ventures with major global investors and currently has in excess of £2.0bn of assets under management.