Arora Group has snapped up the Metro Building in Hammersmith, west London, from fixed charge receivers.
The office block was on the market for over £20m
The 11-storey office building was sold by Watling Real Estate and Cushman & Wakefield on behalf of fixed charge receivers, after being put on the market last year for over £20m.
The acquisition was made in conjunction with Deva Capital, the real estate and corporate capital solutions investment arm of Santander Alternative Investments.
The building, sitting opposite Hammersmith Broadway and Hammersmith Underground station, spans 105,237 sq ft of office space, of which 63,250 sq ft is currently let to a range of tenants.
Jamie Lamond, director in the London office of Watling, said the asset, built in the late 1970s, offered its new owners a range of options for alternative uses or repositioning.
A report from Watling said a conservative leasing strategy would give the building the potential to drive passing rents from around £2.627m a year to £3.850m a year, reflecting a running yield of 18%.
“The Metro Building is a prominent, high-specification office asset in the heart of Hammersmith in west London,” Lamond said.
“The Metro Building provides the Arora Group with a range of options for alternative uses and the opportunity to reposition and enhance the existing building.”
Sanjay Arora, chief executive of Arora Group, added: “The Metro Building is a fantastic addition to our portfolio. Its location is unparalleled in west London, and we see immense potential to enhance the asset through our signature approach to management and refurbishment.
“Partnering again with Deva Capital allows us to leverage our combined expertise to unlock long-term value in this vibrant commercial hub.”
The joint fixed charge receivers, Nathan Pask and Andrew Foster, were advised by Pinsent Masons; while Dentons acted for Arora Group.
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