DWS Group lines up deal to buy Fitzrovia office for £92m
DWS Group is lining up a deal to buy a West End office building for £92m, as the German asset manager looks to redeploy capital from recent sales activity.
The real estate investor is under offer to buy the freehold to 13-17 Fitzroy Street, W1, from flexible office operator Workspace Group.
The building contains 92,669 sq ft of office space, and had been earmarked for refurbishment by Workspace, according to its annual report.
DWS Group is lining up a deal to buy a West End office building for £92m, as the German asset manager looks to redeploy capital from recent sales activity.
The real estate investor is under offer to buy the freehold to 13-17 Fitzroy Street, W1, from flexible office operator Workspace Group.
The building contains 92,669 sq ft of office space, and had been earmarked for refurbishment by Workspace, according to its annual report.
The London-listed flexible working company bought the block in 2017 for 98.5m from Arup, in a sale and leaseback deal. Arup remained as primary tenant with a lease running until 2022.
However, Arup exercised a break clause in June, causing the building to lose around £8.8m of its estimated value, the report continues.
DWS Group is looking to deploy fresh capital into the London office market after selling off City office Capital House to Barings for £130.5m earlier this summer. It is also in advanced talks to sell its Southbank office buildings at 2 & 3 Bankside for more than £410m.
The deal comes at a time when buying opportunities for prime offices are relatively limited in the West End, with more investment capital ready to deploy than stock coming to market.
Among the biggest deals have been Shun Tak Holdings’ £230m sale of 8 St James Square to another German investor, Deka Immobilien, and the £145.5m sale of Cassini House to Kuok Group, by BMO Real Estate Partners.
CBRE is acting for Workspace on the deal. DWS, Workspace and CBRE declined to comment.
Compare this deal with other investment sales in Fitzrovia >>
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