Hines has bought a mixed-use retail and office scheme in the West End of London.
Comprising 80 New Bond Street and 325 Oxford Street, the asset contains 37,414 sq ft of office and retail space.
The property was purchased from Aviva Investors by Hines on behalf of Hines European Value Fund 2 (HEVF2), for an undisclosed sum.
It is currently let to four tenants with vacancy available from August 2020. Hines will refurbish both the site’s retail and office space.
This is the third acquisition for HEVF2, bringing the amount of equity allocated by the fund to €300m. When the first fund recently closed, it had secured €637m.
Jake Walsh, director of Hines UK, said: “Oxford Street and Bond Street are amongst the world’s most iconic and popular retail streets. With the eagerly anticipated adjacent Hanover Square development completing later this year and the delivery of the Bond Street Crossrail station on the way, this location is positioned to capitalise well on localised trends, and will be a unique shop window for any global brand in an unparalleled location.”
Paul White, fund manager of HEVF2, added: “This is a fantastic flagship acquisition for HEVF 2. It epitomizes the HEVF series philosophy of sharp focus on prime locations in prime markets, and on assets that the Hines in-house skillset can actively improve to create new core real estate.”
Gary Sherwin, head of UK transactions at Aviva Investors, also commented: ““The fund in which the property is held is increasing its allocations into assets with secure income streams, including pre-let office and hotel investments in Cambridge and Manchester, which are key locations in our real estate investment strategy. We continue to have appetite for prime retail assets in cities with strong economic fundamentals, including those that are attractive tourist and leisure destinations.
“However, we will sell properties when we can achieve an attractive return for our clients and believe the proceeds can be better redeployed elsewhere, including our strong pipeline of office development opportunities in London. The sale of this asset met our objectives through a competitive bidding process.”