Ares Management Corporation, the US investment giant, has continued its major UK investment drive, buying a Mayfair office and retail block in a deal first revealed by CoStar News.
Ares has bought 10 Brook Street, W1, from Hong Kong exchange-listed property developer and investor Wing Tai, for £43 million, a 3.74 per cent net initial yield or a capital value of £2,400 per square foot.
In a Hong Kong filing Wing Tai said the group were selling as it represented "a good opportunity for the company to realise its investment at a reasonable price". The ultimate buyer is Ares European Property Enhancement Partners IV.
The multilet building is leased to tenants including Noble, Tokoro Capital and Suncore with a flagship Issey Miyake store at ground floor.
Wing Tai Properties, managed by Knight Frank Investment Management, bought the 17,925-square-foot building from Lancashire County Council Pension Fund for £36.75 million in 2013.
Ares Management Corporation, a major global alternative investment manager, has been one of the most active investors in UK real estate recently.
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 the majority of Shaftesbury Capital’s Charlotte Street "Lifestyle" portfolio in London's 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.