International real estate advisor Savills has advised Mitsubishi Estate London on its joint venture with Daibiru Corporation, to dispose of a stake in Warwick Court and the Paternoster Square Estate in the City of London, next to St Paul’s Cathedral.
It marks the second deal in 12 months for Daibiru, part of the Mitsui O.S.K. Lines Group, following its purchase of Capital House, King William Street also in the City of London.
For Mitsubishi this deal comes soon after an agreement with its partner, Edge, for three Japanese investors (Tokyo Tatemono, Toko Electrical Construction and Fuyo General Lease) to fund the new development at 125 Shaftesbury Avenue in London’s West End.
Warwick Court, the 210,735 sq ft asset, is one of three buildings originally constructed by Mitsubishi in the late 1990s as part of the Paternoster Square Estate master plan. The asset has since been comprehensively refurbished by Mitsubishi and Stanhope, completing in 2022, to provide Grade A, EPC A and BREEAM ‘Excellent’ offices now occupied by T. Rowe Price and Mitsui Bussan Commodities on long leases.
Stephen Down, Chairman of Savills London Capital Markets team, who advised Mitsubishi on the transaction, comments: “This is another positive indication of international capital returning to London after several years. It is one of several high profile transactions by Japanese investors in particular who are attracted by the fundamentals of low vacancy rates in the London’s core, strong rental growth on well-located Grade A offices and historically attractive yields.”
For more information, please contact Stephen Down, Grace Cassady or Stephen Hartley.