Blackstone weighs £600m Adelphi sale
Blackstone is considering the sale of the jewel in its central London office portfolio, the Adelphi Building.
The private equity firm has appointed Eastdil Secured and Knight Frank to consider its options on the 330,000 sq ft office building at 1-11 John Adam Street, WC2. The prospective asking price of around £600m for the freehold will reflect a yield of close to 4%.
No final decision to sell has been taken and the building will most likely only formally be put on the market once some of the large lot sizes available in the central London market find buyers, with a decision likely to be taken in around a month.
Blackstone is considering the sale of the jewel in its central London office portfolio, the Adelphi Building.
The private equity firm has appointed Eastdil Secured and Knight Frank to consider its options on the 330,000 sq ft office building at 1-11 John Adam Street, WC2. The prospective asking price of around £600m for the freehold will reflect a yield of close to 4%.
No final decision to sell has been taken and the building will most likely only formally be put on the market once some of the large lot sizes available in the central London market find buyers, with a decision likely to be taken in around a month.
Adelphi is fully let and its largest tenant is online music giant Spotify, which leased 104,133 sq ft last summer. Spotify, which yesterday launched a $29.5bn (£21bn) IPO, is in the process of fitting out its space. The rest of the building is let to tenants including Condé Nast, The Economist, Finsbury, PetroChina, A T Kearney and Shiseido.
The grade II 1930s Art Deco building has views over the River Thames and Victoria Embankment. Blackstone bought the building at the end of 2012 from Dubai investment fund Istithmar for £265m, reflecting a yield of around 7.5%. Since then Blackstone has completed an extensive refurbishment of the entire building, investing more than £80m.
Blackstone has been steadily making disposals from its central London office portfolio over the past year, having sold assets including Lacon London, WC1, last August for £285m to Al Ain Properties, Devonshire Square, EC2, last October to WeWork for around £600m, and Cannon Bridge House, EC4, last month for £248m to FG Asset Management and Valesco Group.
The company still has a substantial portfolio in the City however, most of which it built up between 2012 and 2015. Its £330m 125 Old Broad Street, EC2, is for sale through GM Real Estate and it also owns the likes of Times Square, E1; 125 North Colonnade, E14, and Broadgate Quarter, EC2.
Watch a tour of the Adelphi building
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