Pontegadea preferred bidder on £600m Adelphi

By James Buckley - Wednesday, July 11, 2018 15:47

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Pontegadea, the property investment firm owned by Spanish retail billionaire and Zara owner, Amancio Ortega has been selected as preferred bidder to buy the Adelphi building from Blackstone for just under £600m.

Ortega’s company is close to agreeing terms to buy the building at 1-11 John Adam Street, WC2 after Blackstone instructed Knight Frank and Eastdil Secured to sell the building in April for around £600m, reflecting a 3.75% yield.

Pontegadea has been in acquisitions mode this year, most recently bidding more than £1bn for Goldman Sachs’ London headquarters before missing out to sovereign wealth fund, National Pension Service of Korea (NPS).

Last July, Blackstone completed the full occupancy of the Adelphi, the 330,000 sq ft art deco-designed development, which is one of the largest single office buildings in the West End.

Since its acquisition in December 2012, Blackstone has completed an extensive refurbishment programme of levels 1-13 of the Adelphi, which offers panoramic views over the River Thames and Victoria Embankment.

In addition to global music streaming service Spotify, which has established its new London headquarters with 100,000 sq ft at the building, other prominent tenants include Conde Nast, The Economist, A.T Kearney, PetroChina and Finsbury.

The renovation work undertaken involved three phases to coincide with tenants relocating from the building. The first phase comprising levels 1-6 was completed in Q2 2016, the second phase comprising levels 7-11 was completed in Q2 2016, with the top two floors of 12 and 13 completing in 2017, which marked the conclusion of the total refurbishment.

The building retains its original 1930s Art Deco features.  

Jbuckley@costar.co.uk

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