Greycoat, the London investment and development partner, has continued its flurry of office purchases by wrapping up a deal for London's 90 High Holborn offices, buying the scheme from LabTech in what is understood to be one of the largest office investment deals of the year.
CoStar News understands that the transaction completed earlier this week. It serves as a massive boost to the capital's office investment market, adding to the return of big-ticket deals this year.
The price achieved for the circa 185,000-square-foot building has not been disclosed. Sources told CoStar News that the structure of the transaction means the deal would reflect a fee of around £180 million.
It makes it one of the biggest office sales of the year so far. The only other transaction of the same magnitude is for Atlantic House, which is being bought by Royal London Asset Management from CBRE Investment Management, with CoStar News reporting last month that Royal London has exchanged at the scheme. It is tipped to reach circa £185 million.
The acquisition is Greycoat's second London office deal in less than three months after completing on the acquisition of 55 Strand from Legal & General Investment Management in August. That deal was for £24.75 million, reflecting a circa 7.9% net yield.
Its buying spree has also included 120 Aldersgate Street, in Clerkenwell EC1, from Legal & General. Market sources said Greycoat had paid around £23 million, which reflects a net initial yield in excess of 10%.
Greycoat also clinched 140 Leadenhall Street, a 45,000-square-foot building in the City, from Aviva for £20.3 million, or a net initial yield of 6.38%, in June.
LabTech's sale of 90 High Holborn follows its signing of US law firm Quinn Emanuel Urquhart & Sullivan to an additional 10 years at the block last month. The group expanded its space at the building from 50,000 square feet to 67,000 square feet on multiple leases which run to 2034.
90 High Holborn was originally developed by Minerva in 2003 as the headquarters of Olswang, also a law firm. LabTech bought the building in 2018 for £200 million.
CBRE acted for the vendor, while Cushman & Wakefield acted for Greycoat Real Estate. Both agents declined to comment.