Barings pays £70m for value-add City of London office asset

Investment manager Barings is paying DWS £70.65 million for an 82,413 sq ft (7,656 sq m) office building in the City of London.

The asset at 25 Moorgate comprises 75,000 sq ft of offices and 7,800 sq ft of retail and F&B space.

The acquisition is being made on behalf of Barings Real Estate European Value-Add Fund II (BREEVA II) and the deal reflects an initial yield of 4.8% and a capital value of £857 per sq ft.

Bought as part of a value-add strategy, the entire building will be refurbished to provide  Grade A office space with improved ESG credentials and wellbeing amenities, including active commuter facilities, a green rooftop garden and increased energy efficiency.

BREEVA II is Barings’ second pan-European value-add real estate fund. It recently achieved its final close, having reached a hard cap of €850 million. The fund is targeting value-add opportunities across Europe, with a focus on repositioning and build-to-core opportunities in the logistics, alternatives, living and office sectors. 

“Offices in central London still have immense appeal to occupiers that are keen to attract and retain talent by providing best-in-class space that can facilitate hybrid working, not just through the quality of its facilities, but also its proximity to both transport connections and a range of local amenities that will encourage staff to return to the office,” said Barings head of UK real estate transactions Darren Hutchinson.

Barings said that it is looking for other office opportunities in Sweden, the Netherlands, Germany, Italy, France and Spain including in joint ventures with developers.