HIH Invest Real Estate (HIH Invest) has acquired an office building in central London for an individual mandate from an institutional investor. The property, built in 1978 at Fetter Lane 15, has a total rental area of around 8,000 square meters and was modernized in 2017. The property is fully rented. Tenants are predominantly from the corporate and legal advisory sectors, including leading global patent law firm Marks & Clerk LLP and law firm Peters & Peters Solicitors LLP. The tenant mix is rounded off by service companies from the media and IT sectors.
“London is a strategically important investment market in which we want to expand our portfolio. The property in Fetter Lane is an excellent addition to the portfolio of the fund investing in Europe thanks to its central location and high-quality mix of tenants. The already good energy efficiency of the property is to be further improved as part of an ESG program through various measures in order to increase the attractiveness of the property in the long term,” explains Oliver Scholtz, Senior Fund Manager at HIH Invest, on the purchase.
“The London office market is very dynamic and is regaining strength after the pandemic,” says Matthias Brodesser, Head of Transaction Management International at HIH Invest. “Low vacancy rates and a low level of new construction are leading to a shortage of space and an increase in rents in Midtown. Combined with the high quality requirements of the tenants, the demand for high-quality and sustainable space concepts is increasing. With its central location, the contemporary furnishings and the spacious outdoor areas with terraces on all floors from the second to the seventh floor, the office building in Fetter Lane meets the high demands of tenants.”
The prominent corner building is in the heart of Midtown, one of London’s most sought-after office locations, and is surrounded by shops, cafés, bars and restaurants. Several important transport hubs nearby ensure good accessibility from all parts of the metropolis. Within walking distance of the Royal Courts of Justice, Fetter Lane is a sought-after address for legal advice and law firms.
Martin Payne, Managing Director of HIH Invest Real Estate UK, adds: “London offices are filling up, which can also be seen in the subway, which is now fully occupied again in the mornings and evenings. The opening of the Elizabeth Line later in 2022 will further spur office space demand in Midtown. It connects the western suburbs of Reading and Heathrow in the west with Shenfield and Abbey Wood in east London – an important commuter route.” Legal due diligence was carried out by international law firm Osborne Clarke, based in London, and law firm Cains, based in Douglas accomplished. The technical due diligence as well as the ESG due diligence comes from Cushman & Wakefield, London.
