London, Aug. 3, 2022 – Heitman LLC (“Heitman”), a global real estate investment management firm, and its operating partner Addington Capital, the specialist UK investment and property asset management business, announced today the acquisition of two contiguous, freehold residential blocks in the West End of London. The Marylebone-located 61-130 Miles Buildings, London NW1 were acquired in connection with Heitman’s global core-plus investment strategy.
The two freehold residential buildings are comprised of 70 units, mostly one-bedroom apartments, spanning approximately 28,000 square feet of living space across five floors. The properties are situated within a rapidly developing area of Zone 1 London, which provides convenient access to four Underground train lines available within a two-minute walk of the property.
Caleb Mercer, Heitman Managing Director of European Real Estate Investment said: “London’s long-term demographic outlook, supply constraints, highly diversified economy, and rapidly recovering demand following pandemic-related lockdowns make well-located residential properties a compelling investment opportunity. The acquisition of the Miles Buildings represents our continued confidence in the UK, and more broadly Europe’s alternative real estate sectors. Specifically, the living sectors (rented-residential, senior housing, and student housing) continue to deliver resilient cash flows and delinked, demographically-driven demand despite today’s economic volatility.”
Gordon Black, Heitman Senior Managing Director and Portfolio Manager added: “The Miles Residential buildings provides our global portfolio exposure to one of Europe’s most attractive residential markets with an opportunity to drive value for our clients. The property provides a high-quality addition and further sector and geographic diversification to our global portfolio.”
Matthew Allen, Principal of Addington Capital said: “This is an exciting central London project. This is our first joint venture with Heitman, and we look forward to working with them on further opportunities going forward.”
Heitman’s global strategy invests across three strategic themes: divergence or smart diversification among traditional property types, convergence or capitalization of maturing or mispriced property types, and delinked or defensive, which involves investing in assets with traits less tied to economic cycles.
Addington’s sister company AddLiving, the residential management business, will provide property management services, with Addington Capital as asset manager.