INDUSTRY NEWS

Fund manager buys long lease in Victoria

Global fund manager Stenham has purchased 94,000 square feet of office space at 52 Grosvenor Gardens in the Victoria area of London.

The building cost Stenham £25 million, less than half of what it was apparently worth before the crash in commercial property prices.

At the end of 2007 the property was on the market for £57 million. The fund manager has roughly £2 billion of assets under management, a third of which are in the UK.

Stenham’s latest acquisition reflects a capital value of about £267 per square foot. The fund manager is dropping prices from £40 per square foot to £30 to attract tenants in harder times.

Managing director of Stenham Property Paul Arenson commented, ‘As a consequence of the turmoil in the financial sector and downturn in the wider economy, we believe value is beginning to return to the UK commercial property sector.’

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