New York-based property investor Witkoff Group has made a return to the UK market with the purchase of an office block in London’s Covent Garden for £175m
In a joint venture with London-based DCD Group, Witkoff has bought 90 Long Acre at a yield of 4.2%.
90 Long Acre is a 194,000 sq ft (18,023 sq m) grade A office building, owned by JER Partners and GE Real Estate, which bought the building in 2000. Tenants include Scottish Equitable, Eurohypo, GMAC and Regus.
The acquisition marks the Witkoff Group’s return to the London market following its joint acquisition of Shell Mex House with Lehman Brothers in 1999 and subsequent sale to Rotch, Jack Dellal and the Reuben Brothers.
Witkoff says it is actively seeking further European assets to add to its growing US portfolio.
Scott Alper, principal for the Witkoff Group, said: ‘We believe that Europe offers interesting active management opportunities.
‘We aggressively targeted 90 Long Acre because it offers a redevelopment opportunity similar to Shell Mex House and Witkoff’s redevelopment projects in New York, in that 90 Long Acre’s building to site cover is only 57%.’
Franc Warwick acted for the vendors; CBGA acted for the purchasers.