Ares Management Corporation, one of the world's most active real estate investors, has signed for another 21,041 square feet of London offices as it prepares to consolidate its expanding business into all of the Crown Estate and Norges Bank Investment Management's 124,000-square-foot One Hanover Street redevelopment.
The move comes as Ares has raised another $5.4 billion of capital to invest in value-add real estate opportunities across the US and Europe.
Ares Management has taken a sublease on floors one and three at 25 Argyll Street, which is owned by the Crown Estate and Norges, Norway's sovereign wealth fund. Crossland Otter Hunt advised the lessee. DTRE, the leading real estate adviser, occupies the second floor of the prominent block fronting Oxford Street.
The space is expansionary and has been taken in addition to the 39,000 square feet Ares occupies at 10 New Burlington Street in the West End.
At the end of last year it signed a prelet with the Regent Street Partnership – the longstanding joint venture between the Crown Estate and Norges Bank Investment Management - for all of the redevelopment of 124,000 square feet of offices above the Apple store on Regent Street. 1 Hanover Street will comprise six levels including a new rooftop pavilion and seventh floor terrace overlooking the West End.
It was the largest deal in the West End by rent roll and size in 2025, the largest deal in the core West End market in the last two years, and the third largest deal ever recorded in the core Mayfair and St James’s submarkets.
The Crown Estate is targeting the first quarter of 2027 to complete the redevelopment with Ares scheduled to move in in 2028.
The redevelopment of One Hanover Street adds to The Crown Estate’s pipeline of developments in the West End, with New Zealand House and 10 Spring Gardens due to complete later this year, while work is ongoing at 33-35 Piccadilly.
At One Hanover Street JLL and BCLP acted on behalf of The Crown Estate, and CBRE and Fladgate acted on behalf of Ares Management. Savills acts as Development Manager on behalf of The Crown Estate for One Hanover Street, with Wates as the contractor and Orms Architects as the Lead Architect.