JP Morgan has bought 291 Oxford Street and 2 Harewood Place, W1, for around £71.35 million, a 5.88% yield.
The 26,121-square-foot was sold by Lai Wing-To and comprises two shops let to McDonald’s and EE, with zone A passing rents of £1,096 and £968 respectively.
The upper floors comprise part-let offices passing off an average rent of £68 per square foot.
The deal is the largest single-asset sale on Oxford Street in nearly three years.
Hanover Green advised JP Morgan. JLL advised Lai Wing-To.
| 100s | 200s | 300s | 400s |
| Real Estate in London | Real Estate in Manchester | Real Estate in West Aberdeen | Real Estate in Brighton |
| 3 Bedrooms | 4 Bedrooms | 5 Bedrooms | 2 Bedrooms |
| $750,000 | $500,000 | $450,000 | $900,000 |
JPMorgan Asset Management bought the freehold interest from M1 Real Estate in 2021 for £110 million, reflecting an initial yield of 4.55%, and has carried out a £10 million refurbishment programme.
The building is multilet to eight tenants. A recent letting on the third floor at £127.50 per square foot pointed to the reversion available given the average passing rent on the unrefurbished floors is at £95.36 per square foot. Eight out of nine floors are to be refurbished.
Tenants include financial advisor James Hambro & Partners and Centiva, an investment management firm.
Ares has been a busy buyer of UK real estate.
This year it has completed its acquisition of most Shaftesbury Capital’s Charlotte Street "Lifestyle" portfolio in London's Fitzrovia for £60.5 million or a 5.56% net initial yield. It bought the long leasehold interest in 25 Charterhouse Square, EC1 on behalf of one of its real estate funds, from Helical, for £43.5 million.
At the beginning of the year Royal London Asset Management Property sold a 1.2 million-square-foot portfolio of industrial and logistics assets to Ares Management Real Estate funds for around £200 million and in May it bought a £400 million UK hotels portfolio from Landsec.