Hines has acquired Transport for London’s 354-358 Oxford Street development opposite Bond Street Station, W1.
The mixed-used scheme, the site of which was used as part of the tunnelling process for Crossrail, has planning consent for 17,000 sq ft of commercial and residential space.
Hines UK acquired the development on behalf of Luxembourg-based Hines European Value Fund. It is the fund’s first London asset and its fifth acquisition in the past 12 months.
It is understood that Hines paid around £41m for the site, which was previously valued at £40m and is estimated to have a GDV of £70m.
The development will deliver 6,000 sq ft of retail space across the basement, ground and first floors, with 25m of frontage directly opposite the Bond Street Tube station exits.
The four upper floors will comprise 11 flats with between one and three bedrooms covering 11,000 sq ft.
The scheme will benefit from upgrades including a new entrance and ticket hall at Bond Street and the opening of the Elizabeth Line in late 2019.
Fletcher Priest is the lead architect. Knight Frank advised TfL on the sale. GVA advised Hines.
Jake Walsh, director of Hines UK, said the purchase was a “milestone transaction” for the US-based privately-owned developer. Walsh called it “one of the most sought-after prime locations in the West End of London”.
Paul White, HEVF fund manager, said: “The mixed-use components of this new project offer the fund strong downside protection during uncertain macroeconomic times.” He said HEVF had a commitment to high quality micro-locations and would seek to acquire further value-add assets in the city in the near future.
TfL said it would reinvest returns into the transport network. Director of commercial development Graeme Craig said: “Our investment strategy will continue to see us undertaking a small number of targeted disposals whilst we concentrate our own development activity on build-to-rent in outer London to generate ongoing revenue as well enabling us to provide high levels of affordable housing.”
The transport provider is currently in talks with British Land to sell the Paddington Triangle site above Paddington station and will announce its development partner to bring forward a portfolio of more than 3,000 BTR units later this year.
Hines has approximately £91.3bn of assets under management, with 109 developments globally. The investor’s property and asset management portfolio currently includes 527 properties, representing more than 224m sq ft.
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