AXA Investment Managers - Real Assets completes acquisition of L&G’s Warwick Building in London for £56.6 million

10/04/2017

AXA Investment Managers - Real Assets (“AXA IM - Real Assets”), a global leader in real assets investment and the leading(1) real estate portfolio and asset manager in Europe, announces that it has completed, on behalf of its AXA CoRE Europe Fund(2) (“the Fund”), the acquisition of Warwick Building in London. The 79,506 sq ft (7,386.3 sqm) high quality office building was purchased from Legal & General (“L&G”), on behalf of the Bishopsgate Long Term Property Unit Trust, for £56.6 million (c.€66.2 million)(3).

The Warwick Building is a former Victorian warehouse which includes highly flexible office space across ground and four upper floors. The building is fully let and has potential for further asset management initiatives and has planning consent to add two further storeys to provide up to 25 new residential units.

The Warwick Building sits within Kensington Village, a prominent office campus which was comprehensively re-developed in 2000 and comprises a total of seven buildings. It is located within six minutes’ walk of four underground and overground stations which in themselves are 10 minutes’ by train to the major mainline stations of Paddington, Victoria and Clapham Junction. Located next to the A4, the property also benefits from 45 basement car parking spaces.

The AXA CoRE Europe Fund is the flagship pan-European open ended real estate fund of AXA IM - Real Assets which reached €800 million of total commitments by the end of 2016. The Fund gives clients access to a diversified range of high quality pan-European investments, aiming to provide long-term stable income through capitalising on individual market dynamics and timing. The Warwick Building perfectly fits that criteria and adds to the Fund’s portfolio which already comprises an interest in Tour First in Paris La Défense, the Asticus Building in London, and an interest in a landmark office asset in Milan.

Huw Stephens, Head of UK Transactions at AXA IM - Real Assets, commented: “The fully let Warwick Building is a distinctive and highly appealing property which is part of a landmark scheme in a popular, affluent and extremely well connected area of London. AXA IM - Real Assets remains committed to substantial UK property investment and this acquisition is further evidence of the long-term attraction of London.”

Will Edwards, Senior Fund Manager of L&G’s Bishopsgate Long Term Property Unit Trust, said: “The successful execution of our business plan for this property, realised through the positive settlement of the 2016 rent review, coupled with the subsequent sale, are testament to the skill of our asset management platform and these initiatives have enabled us to deliver strong returns for our client.”

Savills advised AXA IM - Real Assets, whilst Knight Frank advised Legal & General.

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1 Source: IP Real Estate Top 100 Investment Management Survey – Nov/Dec 2016(by assets under management)
2 AXA CoRE Europe is managed by AXA REIM SGP, a subsidiary of AXA IM - Real Assets. The Fund is reserved for professional investors (within the meaning of the AIFMD) from the following jurisdictions: Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Ireland, Italy, Luxemburg, Netherlands, Spain, Sweden, Switzerland and United Kingdom.
3 Conversion as of April 7th, 2017.

Press Contacts

AXA Investment Managers - Real Assets
Charline Coué, Media Relations Manager
Jocelyne Tamssom, Head of Communications
Tel: +33 1 44 45 97 95
PressOfficeAXAIMRealAssets@axa-im.com

FTI Consulting Inc.
Richard Sunderland, Ellie Sweeney, Richard Gotla, Tom Gough
Tel: +44 20 3727 1000
AXAIMRealAssets@fticonsulting.com