M&G Real Estate, one of the world’s leading financial solutions providers for real estate investors, has made its fourth acquisition on behalf of the M&G UK Enhanced Value Fund (UKEV) – a £28.5 million multi-let office asset in Clerkenwell. Launched earlier this year and managed by Paul Crosbie, the Fund takes advantage of the current heightened levels of risk aversion created by the Brexit process, targeting well located, mispriced assets with strong underlying fundamentals and asset management opportunities.
In line with the Fund’s strategy to take on refurbishment and repositioning opportunities, Gate House is a 27,000 sq ft, 1960s office scheme with planning consent for additional space on the third and fifth floors and potential for a new sixth floor. Located in the prime area of St John’s Square – a short distance from the City of London and Kings Cross – Clerkenwell is popular with tenants from the creative sector, including fashion, design and architecture. The opening of the Elizabeth Line at nearby Farringdon next year will improve connectivity and enhance the area’s appeal.
Paul Crosbie comments: “Gate House marks the Fund’s first investment into London in an area with exciting potential for further growth once Crossrail opens. There has been steady growth in the TMT (Technology, Media & Telecoms) sectors in London over the past few years and the continued appeal of Clerkenwell suggests demand will strengthen as transport connectivity improves.
“With planning consent to enhance what is already a strong asset, we expect Gate House to benefit from good rental growth and capital appreciation in the short to medium term.”
Anton Page advised M&G Real Estate on the acquisition.
Launched in February 2018, UKEV invests in well located, supply constrained markets such as London, the South East and the big six regional cities. It is aimed at institutional investors in the UK, Europe, Asia Pacific, Middle East and Canada.
