M&G has bought Ryder Court, SW1, for £132m from Hong Kong-based China Vanke in an off-market deal.
M&G Real Estate, part of M&G’s £65bn private and alternative assets business, bought the 75,000 sq ft grade-A office building on behalf of an Asian separate account mandate, which invests in value-add opportunities. It has recycled some of the proceeds from the recent £95m sale of Saffron House, EC1, which it bought for £78m just nine months earlier.
Paul Crosbie, who leads M&G’s UK value-add initiatives, said: “Opportunities to acquire prime assets such as Ryder Court in prestigious sub-markets like St James’s are rare. While the rise of homeworking has clearly accelerated, demand for quality offices in prime locations is holding up well.”
Vanke bought the building from Henderson Global Investors in 2016 for £115m. It was the first and only UK office bought by the European arm of the Chinese property giant.
The five-storey St James’s office is currently let to various tenants in the financial and hospitality industries. M&G plans to upgrade the reception area, introduce cycle storage, provide shower facilities and create a new rooftop terrace.
TeckLeong Kee, fund manager for M&G Real Estate Asia, said: “The focus on sustainability from occupiers and investors alike has led to a rise in demand for ‘green’ assets, which are commanding premium rents and pricing and a number of ‘green buildings’ have already been certified in London and other major cities. We continue to invest to future-proof our assets for our tenants.”
To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews
View recent office deals in St James’s >>
Discover which agents are most active in the London office market >>
