Blackstone-backed The Office Group has acquired the freehold of Chancery House in Midtown, WC2, from Canada’s Public Sector Pension Investment Board.
It is thought TOG paid £114.5m for the 150,000 sq ft property, which was one of two assets spun out of a prime London office portfolio held jointly by PSP and Aviva Investors earlier this year.
PSP took fully ownership of Chancery House, while Aviva Investors took full ownership of 130 Fenchurch Street, EC3. The remaining assets in the portfolio continue to be managed by the joint venture.
TOG is understood to be planning to carry out a comprehensive refurbishment of the property once it gains vacant possession in a couple of years.
Located in the subterranean bowels of Chancery House, below the office floors, are the London Silver Vaults, a collection of around 30 shops offering the largest retail selection of silver under one roof in the world.
See also: TOG enters German market and signs for 330,000 sq ft
Olly Olsen, co-founder and co-chief executive of TOG, said: “Fuelled by our desire to reimagine and improve the way people work, Chancery House gives us the perfect opportunity to add another unique property to our portfolio; providing amenities including a gym, cinema, café and gardens, and productive ways to work for our new and existing members. The market continues to evolve, with flexible workspace growing greater market share. The benefits of flexible office space improve productivity dramatically, with growing and mature businesses becoming increasingly aware of the advantages in attracting and retaining employees.”
TOG’s existing portfolio comprises 51 properties totalling more than 2.1m sq ft, including York House at King’s Cross, N1, which TOG opened earlier this month with 100% occupancy.
CBRE acted on behalf of TOG; BH2 acted on behalf of PSP.
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