Undeterred by the news of Brexit, investors from across the world were attracted by the long term secure income and exceptional building quality of Fitzroy Place, a new mixed-use scheme in London’s Fitzrovia, with AshbyCapital eventually completing the acquisition of a 50% stake in scheme this week for £217.1m.
Set around a new garden square, the first in W1 for 100 years, Fitzroy Place comprises 221,530 sq ft of high-quality office space across two best-in-class buildings, as well as 19,700 sq ft of retail space at ground and basement levels and a 9,620 sq ft healthcare unit - let to UCL Hospitals NHS Foundation Trust. The development also includes 235 private luxury residential apartments and 54 affordable homes.
The offices are let to eight tenants, with 1 Fitzroy Place – a 150,000 sq ft headquarters building – the new UK head office of cosmetics firm Estée Lauder.
AshbyCapital purchased the stake, which was marketed by global real estate advisor, CBRE, from Kaupthing, while Aviva Investors have retained their 50% share of ownership, which it has held since they acquired the site in 2009.
“This transaction is a boost for the market and demonstrates continued investor demand for London,” said Heidi Wade, senior director, London Investment Properties at CBRE.
Fitzroy Place is AshbyCapital’s second investment in London’s West End. The company is already working with Exemplar and Bedford Estates on The Avenue, a new office and retail development on Tottenham Court Road set to complete early next year. Designed by RIBA Stirling Prize nominees Bennetts Associates, it will offer 71,300 sq ft of office space and 13,970 sq ft of prominent retail space.
Peter Ferrari, chief executive at AshbyCapital, said: “The quality of Fitzroy Place, combined with the rarity of a scheme of this scale in such a desirable West End location, makes this an attractive proposition.
“With The West End Project – a new £40m public realm investment – now underway, and The Elizabeth Line and the £1bn transformation of Tottenham Court Road Station set to make this one of London’s busiest transport hubs, we are hugely excited about the future of this area.
“We are also very pleased to be partnering with Aviva, one of the UK’s strongest financial institutions.”