Morgan Stanley, Wainbridge team for London offices

The two firms have partnered to invest in value-added offices in London, starting with the completion of a 164,000-square-foot office development in West London.

Morgan Stanley Alternative Investment Partners (AIP) has partnered with Jersey-based property investment manager Wainbridge Capital to invest in value-added offices in London, and the pair already has lined up the partnership’s first project. 

According to a statement, AIP and Wainbridge plan to jointly enter into investments in London “where they believe there is an opportunity to unlock significant value through redevelopment, refurbishment, repositioning and other asset management initiatives.” Wainbridge’s UK-based property investment advisory and asset management arm, Wainbridge Ltd., will be responsible for deal sourcing and for executing the various asset management initiatives on behalf of the partnership.

“We think there still are significant investment opportunities in the London office market, and this relationship will enable our investors to benefit from Wainbridge’s expertise in this market segment,” said David Boyle, executive director and portfolio manager of Morgan Stanley AIP Real Estate. 

The first project in the partnership will be the completion of FC200, a 164,000-square-foot office development in West London. Wainbridge initially purchased the project in September for £16 million (€18.5 million, $25.1 million) on behalf of its Wainbridge Global Opportunities London (WGOL) fund. Through this new partnership, AIP will acquire a 49 percent stake in the project, and together AIP and Wainbridge will provide the funding necessary to complete the development. At press time, neither firm would disclose how much capital is needed to finalise the project. 

When completed, FC200 will be a Class A office building with floor plates ranging between 21,000 and 25,000 square feet. Bowmer & Kirkland has been appointed to lead the final phase of construction, which is scheduled to commence this month. 

Edouard Fernandez, principal and co-founder of Wainbridge, said that partnering with AIP “adds to our excitement over the potential for FC200, as well as for future opportunities to acquire well-located assets with income risk.”

To date, Wainbridge has acquired a total of five properties on behalf of WGOL. The fund, which is seeking to raise £100 million in equity, has closed on £64.5 million in commitments as of September, according to information from PERE Connect. WGOL is expected to hold a final close this month. 

Separately, Boyle will be taking over the responsibilities of Joseph Stecher, who recently resigned from the position of chief investment officer of Morgan Stanley AIP’s real estate fund of funds business. For news of Stecher’s departure from the firm, click here.