London, Sept. 21, 2021 – Heitman LLC (“Heitman”), a global real estate investment management firm, has announced the acquisition of 15 Suffolk Street (“Suffolk”), a well-located office asset in the centre of one of London’s premier areas, the West End submarket, near Trafalgar Square and Haymarket. Heitman acquired the asset in connection with its global investment strategy.
Heitman acquired the five-storey, 21,000 sqft asset off market as the UK recovery extends and London office assets offer investors an opportunity to purchase prime office properties at valuations that do not yet reflect the fundamental market conditions. Heitman acquired the asset in joint venture with Greycoat, an independent real estate company with over 40 years of experience in the Central London office market.
“We are pleased to acquire Suffolk, a well-located office asset with a rare combination of quality outdoor space and prime location,” said Caleb Mercer, Heitman Managing Director of European Real Estate Investment. “As the recovery accelerates and extends, we believe there will be further opportunity for favorable entry points into certain asset types, including office, that have been particularly impacted by the public health conditions and that complement our recent alternative acquisitions. The property is our first office acquisition in London since the beginning of the public health crisis and represents our conviction in the recovery of the London office market.”
“Our investment in Suffolk complements our recent European acquisitions in sectors less correlated to GDP such as self-storage and reflects one of the key thematic strategies we are pursuing in the present environment,” said Maury Tognarelli, Heitman CEO. “In this situation, the investment opportunity provides our global portfolio with smart diversification attributes while providing for the potential of capitalization rate convergence often related to mispriced property sectors.”