Family Office of ARA’s John Lim Buying London West End Office Building for $21M

The Land Managers, a real estate investment division of ARA Asset Management founder John Lim’s JL Family Office, has struck a deal to acquire a commercial building in London’s West End for £18.6 million ($21 million).

With the sliding pound bringing down UK asset values, Singapore-based TLM fixed its sights on the five-storey office block at 6 Cavendish Place in the bustling Marylebone area. Upon completion of the transaction in the fourth quarter of this year, the asset will be managed by local firm Highbridge Estates, TLM said Thursday in a release.

The office acquisition marks TLM’s third investment in Britain in the last 12 months, following earlier partnerships with Savills Investment Management to invest in retail parks and build-to-rent residential assets.

“We are pleased to be able to work with Highbridge Estates to secure this prime office asset at an attractive entry price,” said Andy Lim, who is group CEO of JL Family Office, the founder of TLM and a son of John Lim. “6 Cavendish Place is a landmark acquisition for TLM as it is our first direct acquisition in the UK, and a good testament to our deal sourcing capabilities.”

Virtual Freehold

Built in 1907, 6 Cavendish Place is less than five minutes’ walk north of the Oxford Circus tube station at the junction of Oxford and Regent streets, where the villages of Marylebone, Mayfair, Fitzrovia and Soho meet in the City of Westminster.

The 972-year, effectively freehold property has undergone several rounds of redevelopment, most recently in 2020, and features modern meeting rooms and workspaces. TLM is paying roughly £1,444 ($1,629) per square foot for the structure’s 12,882 square feet (1,197 square metres) of net internal area.

The building is master-leased to British construction company Kier Group until April 2026 at a rental rate of £67.84 per square foot per month. TLM expects prime rents in the area to remain stable, largely due to a limited supply of good quality space.

“6 Cavendish Place is a rarely available high-quality asset that we believe offers attractive, stable growth prospects over both the short and longer term,” said Highbridge Estates director Ettie Lewis. “London remains one of the world’s pre-eminent cities and we believe that this is an excellent quality asset that is well placed to deliver top-quality, environmentally conscious, office accommodation.”

Shaking Off Brexit

JL Family Office continues to find the UK a hospitable place to put capital to work in the post-Brexit age.

In August, TLM and Savills IM launched a fund to raise £200 million ($241 million) for development of high-quality, professionally managed housing stock in the UK. The strategy leverages the research and brokering capabilities of the residential team at Savills IM’s London-headquartered parent firm.

Last October, the partners teamed with Straits Trading with a view to raising £360 million ($500 million) for what they termed a “contrarian” UK retail park fund. The UK Value Boxes strategy exploits the mismatch between the strong operating performance of British retail parks and their relatively low property prices and high yields compared with other sectors.

The fund, which is managed by Savills IM UK head Harry de Ferry Foster, announced its first acquisitions in April with the purchase of four retail parks for £75 million ($97.6 million).