Singaporean boutique investment manager HE Capital has acquired an office asset in London’s Soho area in a deal valued at about £35 million ($46 million; €41 million).
The deal for 147-155 Wardour Street, which was announced by the firm’s broker BNP Paribas Real Estate last Tuesday, was brought with a mix of equity and debt, PERE understands.
The firm, which was formed a year ago, acquired the asset on behalf of a core-plus, private real estate fund for which it raised £200 million from investors, mainly comprising family offices from Malaysia, Thailand and Singapore. With the fund, investors would have discretion over the deals in which they would participate.
Nonetheless, the manager expects to deploy the remaining capital within the next 12-15 months, Imran Ellahi, its chief investment officer, told PERE.
He said the firm is specifically targeting freehold assets that have a mix of uses in the Soho and City areas.
The firm is aiming to acquire properties at a yield of between 5.5 percent and 5.75 percent in Soho and 6.5 percent in the City. 147-155 Wardour Street was purchased at a net initial yield close to 6 percent, as per the deal announcement – within its target yield range.
The seller, Hong Kong high-net-worth investor Lai Wing-To, listed three West End assets for sale at the beginning of 2024, including the Wardour Street office, according to the announcement.
The deal was struck at a time when the UK continued to dominate European office transaction activity in the first half of 2024, according to research by Savills. The UK was responsible for a 29 percent share of European office investment volumes, surpassing its five-year average of 24 percent, the research showed. Faster initial price adjustment and attractive yields for cash buyers helped to drive UK transaction activity, according to the broker.
BNP Paribas Real Estate advised HE Capital. JLL acted for Lai Wing-To.
