Hines’s pan-European core fund has exchanged contracts to buy 7 Soho Square in London from Landsec for £78m.
The deal for the offices, previously revealed by EG, reflects a 4% yield and is expected to complete in mid-October.
The circa 62,000 sq ft office block is let to travel platform TripAdvisor and planning consultancy Barton Willmore. The retail element on the basement and ground floors is let to Tesco.
Marcus Geddes, head of property at Landsec, said: “Soho Square has delivered strong returns during our ownership. This sale crystallises value that the team has created and is in line with Landsec’s strategy of recycling capital into our development pipeline.”
Peter Epping, senior managing director at Hines and fund manager for HECF, said: “Soho Square is an iconic landmark and positioned directly opposite the new Tottenham Court Road Elizabeth Line station entrance; it’s one of the West End’s most sought-after destinations.
“Alongside its pinpoint location, the property presents a rare opportunity over time to leverage our value enhancement approach and create workspace that caters to a new generation of office occupiers in the post-Covid environment.”
This is the third signature acquisition Hines has made in the central London market this year, following the purchase of a mixed-use retail and office scheme on the corner of Oxford Street and Bond Street, and the acquisition of the Grain House consented office scheme in Covent Garden.
Knight Frank and CMS Legal advised Landsec, while JLL and Ashurst acted for Hines.
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