The DARE joint venture between Aware Super and Delancey Real Estate has completed the off-market acquisition of Finsbury Circus House near Liverpool Street station in London for an undisclosed price.
The 150,000 sq ft office building, which was redeveloped in 2013, has been held by the same institutional owners for more than 30 years.
Since its launch in October last year, the DARE platform has acquired three super-prime office buildings in central London for a combined value of approximately £500m. Its first acquisition was 20 Manchester Square in Marylebone and this was followed by the acquisition of the mixed-use 11-12 Hanover Square in Mayfair.
The joint venture intends to invest an initial £1bn of capital into the UK market and is targeting counter-cyclical investment opportunities.
Dan Dawe, head of investment at Delancey, said: “These are landmark, prime transactions in a sector where the flight to quality is polarising the market for both occupiers and investors. The ongoing market dislocation creates an attractive buying window, and these acquisitions reflect the recognition that multinational corporates have made as to the important role the office plays for brand, culture, training and collaboration.”
Stafford Lancaster, CEO of Delancey, added: “Delancey’s combined debt-and-equity strategies provide a 360-degree view of the Central London office market, and with Aware Super, an exceptional partner, we are able to leverage capital strength with deal sourcing, investment, and asset management capabilities to work together to create a market-leading portfolio, which will deliver strong risk-adjusted returns for their members and our shareholders.”
Mathieu Elshout, senior portfolio manager – property UK, at Aware Super, said: “The strengths of this partnership have been instrumental in Aware Super and Delancey seizing the exciting window of opportunity that has opened as the Central London office market is quickly re-pricing. This demand for landmark, prime office spaces also include assets with strong existing sustainability credentials but where further upside can be captured through additional ESG-focused initiatives aimed at enhancing environmental performance. We look forward to continue revitalising London’s office and commercial heartlands through our strategic positioning in UK real estate.”
Damien Webb, head of international and deputy chief investment officer at Aware Super, added: “Together, these transactions signal the return of global institutional capital, which is a major vote of confidence for the Central London office investment market. They also signal a new source of attractive risk-adjusted returns for our 1.2 million members in Australia.”
