Carlyle Group LP (CG:US), the second-biggest alternative-asset manager, sold a London office property to larger rival Blackstone Group LP (BX:US) for 300 million pounds ($514 million) as the U.K.’s growing economy spurs gains in the value of workspace in the city.
The 382,000 square-foot (35,500 square-meter) property at Alban Gate in the City of London financial district is leased to JPMorgan Chase & Co. (JPM:US) and is the fourth sold from six buildings Carlyle bought in 2010 for 671 million pounds, Carlyle said in an e-mailed statement. JPMorgan refurbished the property this year and rented out “much of the space” to a law firm, according to the statement.
Investors have been competing to buy London offices to gain from rising values and rents. The value of workspace in central London climbed 1.8 percent in May from a month earlier, according to Investment Property Databank Ltd. Office leasings this year have totaled 5.15 million square feet, up 12 percent from the same point last year, broker CBRE Group Inc. (CBG:US) said last month.
“Demand for this type of asset in today’s market, combined with the recently completed asset-management work undertaken by the property’s tenant, provided an excellent opportunity to realize value,” Mark Harris, a managing director at Washington-based Carlyle, said in the statement.
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