Investor aiming to up exposure to UK energy capital GG Capital has bought Equinor House…
26.02.2024
GG Capital buys West End office for repositioning play
Asset is home to Morgan Stanley’s wealth division
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What GG Capital has bought 9 Upper Grosvenor Street
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Why It is seeking to take advantage of above-average yields in the West End
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What next The investor will undertake a capex programme to enhance the building’s environmental credentials
GG Capital has bought the West End headquarters of Morgan Stanley’s International Wealth Management offices, React News can reveal.
“Today’s market offers a very interesting entry point, with yields above their historical average”
SPOKESPERSON, GG CAPITAL
The 4,543 sq ft building just off Grosvenor Square is let to Morgan Stanley Group, which has a lease running until 2031.
GG said that the asset is let at a low and reversionary passing rent, providing the potential to increase the building’s net operating income in the short-term. The new owner’s asset management strategy will consist of stabilising the scheme by undertaking a capex programme to enhance its EPC rating ahead of the next rent review and lease re-gear.
GG Capital said it is looking to deploy more capital opportunistically across all asset classes with a particular focus on offices, logistics, residential and data centres.
Karl Abawatt, chief executive at GG Capital, said: “Today’s market offers a very interesting entry point, with yields above their historical average, and amidst an encouraging context of interest rate cuts. We are very pleased to have secured this asset that offers solid bones and located in prime Mayfair.”
Cushman & Wakefield advised GG Capital.
