Euro Real Estate, a Wilhelm von Finck group, has bought 24 Savile Row in Mayfair for around £90 million, CoStar News can reveal.
The prime multilet, part freehold, part virtual freehold property comprises 29,766 square feet of office and gallery accommodation and is let at a rent of £126 per square foot, inclusive of rent-free top-ups. It is rated EPC A and BREEAM Excellent.
Ralf Peter, managing director, Euro Real Estate, which was advised by BNP Paribas Real Estate, said in a statement: “We are extremely proud to have acquired this prominent and prestigious mixed-use corner building in the heart of Mayfair.
“The property boasts unique fundamentals including its bespoke architecture. The facade is a tribute to Savile Row’s tailoring heritage, clad in 10,000 hand-glazed ceramic tiles. The three-dimensional crystalline glazes reflect and refract daylight, capturing differing moods and subtly changing the appearance and tone of the building, depending on the weather and time of day, like the fabric of a bespoke suit. We are excited to undertake our proactive asset management strategy in order to increase the highly reversionary rental tone within the building.
“The acquisition of 24 Savile Row is a perfect example of our business strategy to invest in trophy assets in European metropolises. It completes our fifth acquisition in central London and demonstrates our strong commitment to the UK’s capital city.”
Fergus Keane, head of central London capital markets, said: "The deal is another marker for the market gathering pace and I anticipate further transactions throughout the year."
Market sources suggested a £90 million price reflected a net initial yield of around 4% establishing pricing for core prime London assets. It is another recent circa £100 million transaction following JPMorgan Asset Management going under offer to sell Times Place, 45 Pall Mall, a 59,712-square-foot trophy office St James's for more than the £135 million guide price, or 4.35% yield. Oval Real Estate, in partnership with Elliott, has also gone under offer to buy 14 St George Street from Chinese Estates for around £131 million.
BNP Paribas Real Estate advised the buyer, which also received advice in the transaction from Avison Young, Mayer Brown and DLA Piper.
The Von Finck family's wealth can be traced back to Wilhelm von Finck, who co-founded German insurers Allianz and Munich Re in the 19th century.