Real estate investment manager Barings announced they have acquired a Grade A office building in the City of London for £130.5m from a German retail real estate fund.
The global company gained Capital House, a 126,000 square foot office, retail, and ancillary space with 55per cent of the building currently being let to the likes of Pret A Manger and Sainsbury’s.
A comprehensive assessment of active asset management will be undertaken by Baring to reposition the building into a ‘best-in-class office space with strong sustainability credentials.’
Managing director and real estate country head Darren Hutchinson said, “this transaction allowed us to acquire a prime Grade A office building in the heart of the City of London.”
Advised by Savills and CMS, Barings hope that the acquisition of the building will increase footfall back into offices, despite high numbers of coronavirus cases.
Gunther Deutsch, Barings managing director and head of real estate transactions in Europe, added the transaction reflects the ‘appetite for attractive office acquisitions’ across the continent. Adding he sees ‘good value in the UK especially in the office, logistics and BTR/student housing sectors.’
The acquisition of Capital House was one of four purchases for Barings so far this year.
London has long been a hub for thriving offices, however, pandemic lockdowns saw the closure of workplaces for many. As the UK returned back to office life many companies are opting for more flexibility to work from home, raising concerns how much will offices be used.