Queensgate Investments Sells London Executive Offices, Securing 3.0x Gross ReturnPRNewswire
Queensgate Investments ("QI"), has sold London Executive Offices ("LEO") to a private investor for an undisclosed sum. QI acquired LEO from Morgan Stanley in 2013. The sale, along with interim distributions, results in a gross return of approximately 3.0x to Queensgate fund investors.
QI has transformed LEO into the UK's largest premium serviced office operator, increasing revenues to nearly GBP 100M. LEO now commands a leading position in the market with + circa 90% occupancy, in excess of 3 years length of stay and a significantly diversified customer base. LEO has circa 900,000 sq ft in Belgravia, Mayfair, Midtown and the City. Key owned assets include 33 St James Square, Central Court, 1 Cornhill, 78-79 Pall Mall, 53 Davies Street, 2 Eaton Gate, 84 Brook Street, Hudson House, 288 Bishopsgate, 16 Old Queen Street and 17 Cavendish Square.
Jason Kow, Chief Executive Officer of Queensgate said: "The LEO sale highlights QI's proven ability to buy defensively and create value through multiple income and capital levers for our investors."
Rothschild & Co, Brown Rudnick LLP and KPMG LLP advised QI. HFF Securities, Bryan Cave Leighton Paisner LLP and PwC advised the purchaser.
ABOUT QUEENSGATE INVESTMENTS
Queensgate Investments is a partnership between the Kow Family, LJ Partnership and Peterson Group. QI advises and manages around GBP 2.0B of assets and advises discretionary equity with significant additional buying power from its committed discretionary fund.
Key investments include:
In 2017, QI acquired Generator Hostels from Patron Capital. Generator Hostels owns 14 predominantly freehold assets. Generator Hostels earns current revenues of over EUR 70M, and targets the fast-growing sector of millennial customers, focusing on the best capital city addresses, design-led interiors, and most of all, attractive shared social spaces.
In 2015, QI acquired the 906 room Kensington Forum Hotel, the fifth largest hotel in the UK, from Apollo
In 2013, QI acquired London Executive Offices from Morgan Stanley, a 5* service office business, with over 37 assets and circa 860,000 sq ft in Belgravia, Mayfair, Midtown and the City. Key assets include 33 St James Square, 1 Cornhill, 53 Davies Street, 78-79 Pall Mall and 2 Eaton Gate.
In 2015, QI finished construction on a 488 room 5-star InterContinental Hotel, Europe's largest hotel connected conference centre, 100 private residences and 40 serviced apartments at the O2 Arena.
Queensgate differentiates itself by its flexible, nimble and non-institutional capital.