Queensgate Investments has acquired EOG’s prestigious collection of 28 City and West End Business Centres.
The new owner described Executive Offices Group as “the best five-star London serviced office business”.
Victoria and the City of London are among the key locations within the 513,700 sq ft office portfolio, alongside the more exclusive Serviced Offices to let in Mayfair and St James’s. In fact the company’s head office overlooks the manicured lawns of St James’s Square.
Morgan Stanley had held the investment for over seven years, following the sale by the founders Peter Kershaw and Peter Allport in 2005. Now with over 3,000 customers, EOG’s turnover has risen to £45m since 2010, representing a 10% year-on-year increase.
The luxury Serviced Office business will be held within Queensgate’s Investments Fund I, under the overall direction of Jason Kow and senior staff from the LJ Group. The new owners will be determined to maintain the high levels of customer satisfaction, whilst improving the current occupancy rate of 88%.
Queensgate Investments LLP’s chief executive Jason Kow commented on the deal, saying: “Executive Offices Group represents the unique marriage of the highest-quality central London real estate portfolio and a best-in-class, scalable operational company. Queensgate Investments Fund I’s General Partner looks forward to continuing the Group’s first-class service offering, growing the robust in-place operations and expanding the impressive property portfolio.”
Although, Morgan Stanley originally paid £220m for EOG, it has taken time for the underlying value of the commercial property to begin to recover. With most of the assets held on attractive freeholds or via long leases the new owners will be well placed to capture any further capital appreciation.