Sale price of £475m is well below £700m sought two years ago, raising questions about values in the sector.
Queensgate Investments’ sale of the 38-property portfolio comes amid a co-working boom in London; serviced offices are poised to account for 30% to 35% of offices in the capital by 2030, according to flexible workspace adviser The Instant Group, and Japanese tech giant SoftBank is reportedly in talks to plough another $10bn (£7.7bn) into WeWork.
This flurry of activity raises the questions: why did LEO take so long to sell and what does the sale price mean for the valuation of the wider serviced office sector?
You must be logged in to continue
Register for free to finish this article
Due to the unprecedented challenge facing our industry at this time propertyweek.com will be entirely free to view to all users until 19 April. Register now to benefit from the following:
To access this article REGISTER NOW
Would you like print copies, app and digital replica access too? SUBSCRIBE for as little as £5 per week.