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AXA IM disposes of £73.8 million Midtown block

AXA IM, advised by global real estate advisor Colliers International, has disposed of 20 St Andrew Street, London EC4, to the National Bank of Kuwait, which was acting on behalf of a private client, for £73.8 million. The sale represents a net initial yield of 4.8 per cent and a capital value of £1,260 per sq ft.

The newly developed 58,517 sq ft office building is located in Midtown, directly opposite Goldman Sachs’ new European headquarters.

Colliers’ London Offices Capital Markets team advised AXA when it purchased 20 St Andrew Street in 2015, and were subsequently instructed to lease the building following its extensive redevelopment by AXA IM and its development manager Morgan Capital Partners. Since its completion in 2017, 20 St Andrew Street has been successfully let to eight tenants.

Ian Chappell, Head of Value Add and Development Funds at AXA IM – Real Assets, said: “We invested into this asset with a compelling business plan and it is with great satisfaction to have seen this successfully executed, allowing us to crystallise the value generated for our clients.

“This disposal is a fine example of both our ability to deliver on our stated value-add strategy and to the market-leading expertise of the AXA IM - Real Assets’ investment and asset management teams, who worked hard alongside Morgan Capital Partners to secure a property with such attractive growth prospects and then to transform it into the well-let Grade A asset we’ve brought to market. We look forward to continuing this value-creation strategy on behalf of our clients in PEVAV II, our second value-added venture.”

James Nicholls, Director – London City Capital Markets, Colliers International, said: “We were delighted to advise Axa IM on the disposal of 20 St Andrew Street, EC4. This newly developed office-led scheme was completed to an exceptionally high standard by AXA IM and Morgan Capital Partners, and the disposal follows a highly successful leasing campaign.”

Colliers and Savills acted for AXA IM. Cushman & Wakefield acted for National Bank of Kuwait.