Beacon Capital acquires London office property for £325 million

The US private equity firm has acquired MidCity Place, a mixed office and retail development in central London, from Invista Real Estate and Delancey.

Beacon Capital Partners has acquired the central London office and retail development MidCity Place from the LSE-listed property fund Invista Real Estate and Delancey, the London-based fund manager run by Jamie Ritblat, for £325 million ($657 million).
Consisting of 350,000 sq. ft. of office and retail space, the property is located in London’s Holbourn neighborhood. Current tenants include Towers Perrin, Mitsubishi and Elictricite de France Trading. Beacon also recently acquired another Holbourn property nearby at 200 and 214 Grays Inn Road. Before that, Beacon acquired 33 Grosvenor Place, in the Knightsbridge neighborhood of London, for £208 million in December 2006.

London office property has been a popular target lately. Last month RBS sold Canada Place, an office block in the heart of London’s docklands, to Evans Randall, a US boutique investment bank that syndicates out ownership of real estate. Evans Randall also recently sold ABN’s UK headquarters at Bishopsgate in London, and it bought a 50 percent stake in 30 St Mary Axe (The Gherkin).

The office interest hasn’t been confined to London. Beacon recently formed a 50/50 joint venture with Axa Real Estate Investment Managers to co-develop and subsequently purchase the Axa Tower in Paris. The office development, located in La Defense to the west of the city, will be completed in the fourth quarter of 2010.