Clearbell and three co-investors acquire central London office block, 65 Kingsway, for £59 million
Clearbell Property Partners III LP (Clearbell), a fund managed by Clearbell Capital LLP, announces the acquisition of 65 Kingsway. Additional capital was sourced by co-investment from institutions from the US, France and Finland indicative of sustained international interest in the London market, in spite of Brexit uncertainty.
65 Kingsway is a freehold grade II listed Art Deco office building, located in the heart of Midtown. The building is comprised of 70,440 sq ft of space over seven floors. The building was formerly the headquarters for Kodak.
Current tenants include international education charity, Ark; men’s shirt store, Eton; fitness chain, Arena 8 and Soho Coffee Shops.
Rob West, Partner at Clearbell said: “Central London has performed beyond expectations given Brexit uncertainty. Overseas investors are attracted by the weaker pound in a Brexit context and by London’s strong fundamentals as the world’s most liquid real estate market. Supply-demand dynamics in the capital remain attractive. This co-investment proves that London remains an attractive location for inward investment.
“This is a good London office location where occupiers are willing to pay higher rents for quality space. We are planning a comprehensive repositioning to create contemporary space building on 65 Kingsway’s heritage as London’s first open plan office and workshop. Midtown is benefitting from increased tenant interest from a broader range of occupiers, including those from the Media and TMT sector who are being priced out of Kings Cross, Clerkenwell and Shoreditch.”
Capital Real Estate advised the seller. Clearbell was advised by Farebrother and BCLP. Laxfield Capital provided the loan facility.
65 Kingsway is Clearbell’s most recent investment in London after the Sloane Club in October 2017.