Highly active US investment giant Ares Management Corporation has completed its acquisition of 101 New Cavendish Street, a prime office in London's Fitzrovia, for around £100 million.
BGO's WELPUT fund appointed Colliers to sell the building earlier this year seeking up to £115 million or a 5.69% net initial yield and a capital value of £1,148 per square foot.
The office has a passing rent of £65 per square foot and is leased to tenants including talent management agency CAA Sports, Bridge Real Estate Investments Group and Zenium Technology Partners.
It has a weighted average unexpired lease term of 3.2 years to breaks and 6 years to expiries.
The West End of London Property Unit Trust (WELPUT), advised by Grafton Advisors and then managed by Schroder Property Managers (Jersey), bought the freehold interest in the office and retail from Greycoat Central London Office Development Fund for £86.5 million in 2014, reflecting a net initial yield of 3.43%.
The acquisition continues Ares's major UK real estate investment drive. In May it bought 10 Brook Street, W1, from Hong Kong-listed property developer and investor Wing Tai, for £43 million, a 3.74 per cent net initial yield, in a deal revealed by CoStar News.
The ultimate buyer was Ares European Property Enhancement Partners IV.
Earlier this year it bought the international business of global industrial real estate giant GLP Capital Partners, excluding China, in a transaction valued at $3.7 billion.
At the beginning of last year Royal London Asset Management Property sold a 1.2 million-square-foot portfolio of industrial and logistics assets to Ares Management Real Estate funds for around £200 million.
Last year it completed its acquisition of most of Shaftesbury Capital’s Charlotte Street "Lifestyle" portfolio in Fitzrovia for £60.5 million or a 5.56% net initial yield, as well as 25 Charterhouse Square, EC1, on behalf of one of its real estate funds, from Helical for £43.5 million.
CBRE advises Ares. Colliers advised BGO.
All parties declined to comment.