Hines has acquired Film House, W1, on behalf of its Hines European Value Fund 3 for around £135m.
The 103,000 sq ft Wardour Street office block comprises 94,000 sq ft of office space and 9,000 sq ft of restaurant space.
The Soho building, which was built in the late 1920s and was formerly Nike’s London headquarters, is vacant and will be refurbished by Hines to provide workspace with high ESG credentials and convenient access to the Elizabeth Line.
Film House is targeting BREEAM Excellent, WELL Platinum, EPC A and a net-zero-carbon operational strategy.
The deal marks the third acquisition for the fund, which is looking to build a value-add portfolio across major real estate sectors in primary European markets.
Paul White, senior managing director and HEVF 3 fund manager at Hines, said: “The market environment remains challenging, and as a fund we have exercised high discipline over pipeline for the past year, despite raising a great deal of dry powder.
“When our origination channels deliver a quality asset in one of our most favoured locations in all of Europe, and with the potential to achieve top ESG credentials, we will invest.
“Film House is a third flagship acquisition, and we will now apply the full Hines skillset, seeking to create additional value here.”
Hines UK managing director Jake Walsh said the company sealed the deal against “a backdrop of acute undersupply of grade-A next-generation office stock in central London”.
Savills advised Hines on the transaction.
See sales comparables for W1 >>
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