JPMorgan Asset Management has completed the sale of Times Place, 45 Pall Mall, a 59,712-square-foot trophy office in London's St James's for more than the £135 million guide price.
US private equity group Ares Management, one of the most active investors in UK real estate recently, has bought the building for £135.45 million, reflecting a 4.33% net initial yield and £2,668 capital value per square feet.
. It is understood to be the only central London office asset to trade above the asking price in 2024 so far.
JLL advised on the sale, while CBRE advised Ares.
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.
(This story was updated to include the correct net initial yield.)