Barings, one of the world’s largest diversified real estate investment managers, on behalf of Barings Real Estate European Value-Add Fund II (BREEVA II), has acquired an 82,413 square feet office asset in the City of London for GBP70.65 million from global real estate manager, DWS. The deal reflects an initial yield of 4.8 per cent and a capital value of GBP857 per square foot.
25 Moorgate comprises c. 75,000 square feet of office space, with c. 7,800 square feet of retail and F&B space across the ground floor and basement, and is currently fully let to two tenants. It is well located in the centre of the City of London, the UK’s leading professional and financial services business district, and is well connected to local and national transport links via London Underground and National Rail stations, including Bank, Liverpool Street and Moorgate, and is set to benefit further from the opening of the Elizabeth Line, which will provide easy access to Heathrow Airport as well as commuter towns such as Reading in the west and Shenfield in the east.
Acquired as part of a value-add strategy, Barings intends to refurbish the entire building to provide a best-in-class, Grade A office space with leading ESG credentials and wellbeing amenities, including active commuter facilities and a green rooftop garden. Improvements will also be made to optimise the energy efficiency of the building.
BREEVA II is Barings’ second pan-European value-add real estate fund. It recently reached its final close having reached its hard cap of EUR850 million after receiving EUR1 billion of client demand, significantly surpassing the target of EUR750 million. It is targeting value-add opportunities across Europe, with a focus on repositioning and build-to-core opportunities in the logistics, alternatives - living and office sectors.
Source: barings.com on the 10th of March
https://www.barings.com/nl/guest/news/press-releases/barings-acquires-city-of-london-office-for-70-65-million