Queensgate Investments has put London Executive Offices up for sale for £700m.
The private equity firm, backed by LJ Partnership, has put the portfolio of 33 serviced offices on the market through Lazard.
The 745,000 sq ft portfolio includes 33 St James’s Square, SW1, Central Court, 1 Cornhill, EC3, 78-79 Pall Mall, 53 Davies Street, W1, 2 Eaton Gate, SW1, 84 Brook Street, W1, Hudson House, 288 Bishopsgate, EC2, 16 Old Queen Street, SW1, and 17 Cavendish Square, W1.
Queensgate, which is headed by chief executive and former London & Regional director Jason Kow, bought the company for £260m in 2013 from Morgan Stanley. It was previously called Executive Offices Group.
The company, which generates around £80m of revenue from its 2,200 customers per year, is targeted at the higher-end serviced office market. In recent years the serviced office market has rapidly grown and segmented with the introduction of companies such as WeWork and The Office Group.
Kow said: “Going forward, LEO has significant further growth opportunities from horizontal expansion into identified owned and leased properties. LEO post turnaround also has an attractive running yield which is particularly important in today’s low yield environment.
“Queensgate’s ownership of LEO has been hugely successful for all parties, and we look forward to continuing our strategy of identifying similarly attractive opportunities for our investors.”
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