Alinor Capital Management LLP (“Alinor”), an alternative credit investment firm, and Lugus Capital (“Lugus”), the UK and Irish real estate investment and asset management firm, have announced the acquisition of Garden House, a vacant office building in the City of London, in partnership with development partner, Pillar Development Management (“Pillar”).
The asset is located on Throgmorton Avenue, ~300m from the Elizabeth line entrance at Liverpool Street and ~500m from Bank, in an established office location opposite Blackrock’s existing HQ. The building was formerly in use as part of Deutsche Bank’s London Wall Campus.
The office currently extends to approximately 54,000 sq. ft. of gross internal area and will be comprehensively refurbished and repositioned as a best-in-class office asset, responding to occupier demand for high-quality, sustainable, and well-connected office space in a supply-constrained market. In partnership with Lugus and Pillar, Alinor will undertake a comprehensive investment plan, which will include delivering premium amenity-rich workspaces, end-of-trip facilities, terraces, and an enhanced reception area. The scheme will target an Excellent rating under the globally recognised Building Research Establishment Environmental Assessment Method (BREEAM), demonstrating high standards of sustainability and environmental performance. Upon completion, the building is expected to have a gross development value in excess of £70 million.
Alinor is a fundamental, value-oriented investment firm specialising in European alternative credit with a flexible mandate that extends to hard assets including real estate. This is Alinor’s third real estate investment this year following its purchase of 1 Tony Wilson Place in Manchester and The Bond in Glasgow.
Lugus is a privately held real estate investment and asset management platform based in the UK and Ireland, focused on delivering long-term, risk-adjusted returns for its partners through strategic investment in the built environment. The acquisition marks Lugus’ first major London office deal as the firm adds UK assets to its existing €900m portfolio.
Alex Mahler, Co-Founder and Partner at Alinor Capital Management, said: “This transaction reflects our continued focus on acquiring high-quality real estate assets in resilient urban markets. We see continued demand for best-in-class, well-connected, and sustainable workspaces and look forward to partnering with Lugus and Pillar to transform Garden House and create long-term value for occupiers and investors alike.”
James Ghent, Managing Partner of Lugus UK, said: “Garden House is an important marker for us as we deliver against our stated ambition to grow our UK investment footprint. It reflects our focus on prime assets in prime locations, where strong occupational demand and structural supply constraints can support high-quality real income for our investors. We are continuing to see opportunities both in London and in Dublin and are selectively pursuing opportunities to add to our portfolio. We look forward to working with Alinor and Pillar to deliver our first landmark project together in one of London’s most connected and established submarkets.”
Tom Smallbone, Director at Pillar Development Management, said: “We are pleased to have kicked off our partnership with Lugus on Garden House and look forward to working with them alongside Alinor to deliver the project.”
Colliers acted for the seller, with Savills providing investment advice to the purchaser.