Queensgate Investments is considering options for its portfolio of high-end serviced offices in London, including a £700 million sale, CoStar U.K. reported.
The investment firm has hired bankers Lazard to explore options for the London Executive Offices business, which was acquired from Morgan Stanley Real Estate Fund V for £260 million. The 28-asset acquisition in 2013 was the first large institutional move into the serviced offices sector, the news outlet said Oct. 10.
Since the acquisition, the portfolio has increased to 33 serviced offices located in Belgravia, Mayfair, Midtown and the City of London. The offices span approximately 745,000 square feet, and the occupancy rate is "approaching 90%." The business generates an annual revenue of around £80 million, the report said.
Citing Queensgate CEO Jason Kow, London's Financial Times reported Oct. 10 that the U.K. capital has seen a "spike in demand" for short-term office space since the Brexit vote.