Eric Parry designed 99,000 sq ft office and retail block in heart of Mayfair concludes Plaza portfolio sale
LaSalle Investment Management has completed the sale of 23 Savile Row to Lazari Investments for £277.5m on behalf of Plaza Global Real Estate Partners, the joint venture between LaSalle and Quantum Global Real Estate, CoStar News can reveal.
The trophy office building, purchased in 2012, occupies a virtual-island site in the heart of Mayfair. It was originally designed by Eric Parry Architects, completed in 2009, and provides 99,000 sqft of office and retail space over basement, ground and six upper floors.
The property is let to seven tenants including Sapinda, General Atlantic and Angelo Gordon, with the ground floor let to the gallery Hauser & Wirth.
It was part of a wider collection of office properties spread across New York, Paris and Munich codenamed ‘The Compass Portfolio’, which was being marketed by LaSalle and Quantum for a total price of £1.3bn.
In 2017, LaSalle and Angola’s central bank first considered selling the portfolio, then valued at £1bn. However, the pair opted against the sale after the global recovery in crude oil prices eased some liquidity concerns for the Angolan fund, removing the need to sell the assets.
LaSalle said that as a result of this sale, the Plaza portfolio has now been sold in full and the joint venture has concluded its portfolio sale.
Simon Marrison, Chairman of Europe at LaSalle, said: “As with the remainder of the portfolio 23 Savile Row has been an excellent investment for our client. This is a prize asset in an excellent location which has performed well attracting strong rents throughout the cycle. Given the dynamics in the West End market, partly driven by a lack of supply, now is an opportune time to sell. We continue to believe in the long-term prospects of the London market, particularly given the strong interest from a diverse range of investors on a global scale.”
LaSalle worked with JLL (broker) and Clifford Chance (legal) on this sale.