Residential Land and Ivanhoé Cambridge have put three properties worth a total of £300m on the market in the past 12 months – almost a third of their joint £1bn prime London residential portfolio.
The partners, which formed the joint venture in 2012, are hoping to capitalise on an improvement in the prime London residential market since interest rates started to stabilise and are understood to be under offer on one of the three assets.
They have just put 39 Hill Street in Mayfair on the market for £125m through Cushman & Wakefield and Wetherell. The 51,236 sq ft property, which comprises 65 studio, one-, two- and three- bedroom apartments, is being marketed as “an outstanding, income-producing freehold residential investment”.
Described as a “unique investment or break-up opportunity”, it is one of the most expensive residential properties in London to go on sale this year and was acquired by the joint venture for £100m in 2015.
Mark Clegg, international partner at Cushman & Wakefield, said: “This landmark, income-producing freehold apartment building is one of the most significant residential investment opportunities in Mayfair for several years. It is rare for a residential building of this size and ultra-prime address to be offered for sale in Mayfair.”
Peter Wetherell, founder and chairman of Wetherell, added: “It is an outstanding investment opportunity for a discerning global investor.”
The second property that has been brought to market is Strathmore Court in St John’s Wood, which is being offered for £75m through Knight Frank and BNP Paribas Real Estate.
The property, which the partners acquired in an off-market deal for around £40m in 2014, boasts 21 apartments totalling 39,000 sq ft and has planning permission for a three-storey rear extension.
Knight Frank said it represented a “rare opportunity to acquire a prime central London, unbroken, freehold residential island mansion block directly opposite and with views over Regent’s Park”.
Meanwhile, Hamlet Gardens in Hammersmith, which is being sold through Cushman & Wakefield and Eastdil Secured, is understood to be under offer to QuadReal Property Group for around £100m. The 100,000 sq ft freehold estate, which features 122 one- to three-bedroom apartments, was put on the market in November 2022 for £130m and was originally bought by the partnership for around £95m in 2015.
On 2 November, the Bank of England held the base rate at 5.25% for a second time in a row after 14 consecutive increases, sparking renewed confidence in the prime central London investment market.
A residential investment source described it as “significant” that the joint venture was selling into a stronger market. “Ivanhoé Cambridge and Residential Land’s long-running partnership continues and remains strong, with the parties owning a prime portfolio worth £1bn,” said the source. “They are selling these properties in the normal course of business, encouraged by the strengthening of the prime central London residential market since interest rates stabilised.”
Following the sales of the three properties, Residential Land and Ivanhoé Cambridge will own £700m of prime central London residential property together.
