German asset manager Patrizia has agreed a prelease of 89,000 square feet of offices at 4ORTY, located at 40 Grosvenor Place, SW1, to Ohio-based medical group Cleveland Clinic, CoStar News can reveal.
The letting is additional space for the clinic and comes four years after Cleveland agreed a 15-year lease for 28,841 square feet of offices at the building. That letting provided the group with office accommodation next door to its then-recently opened clinic, its first in the UK.
A remaining 81,000 square feet of offices is now being marketed by Knight Frank and CBRE. Patrizia's repositioning of the offices is scheduled to practically complete in the final quarter of this year.
The building is in Belgravia, opposite the Buckingham Palace gardens and was bought by Patrizia in 2012.
Christie Wright, co-head of investment management at Patrizia, said in a statement: “The prelet to Cleveland Clinic at 40 Grosvenor Place is a significant milestone in the repositioning of this prime central London office asset and underscores the strength of Patrizia’s real estate asset management capabilities. Cleveland Clinic is one of the world’s leading healthcare providers, and their commitment to the building reflects our ability to anticipate demand, curate complex spaces for specialist requirements and create long-term value for our investors. This deal exemplifies how we apply hands-on investment management to unlock potential and deliver high-quality, purpose-driven space for a world-class occupier.”
Knight Frank and CBRE act as joint agents for Patrizia. CBRE advised the Cleveland Clinic.
(Story updated to confirm the transaction has completed.)