London-based real estate group Black Mountain Partners announced today it has completed the sale of 68 King William Street, London EC4 in conjunction with funds managed by the Real Estate Group of Ares Management Corporation (NYSE: ARES) (“Ares”).
Black Mountain Partners and funds managed by the Real Estate Group of Ares Management invested in the property in 2019 through a joint-venture – with a view to reinvigorating an exceptional building, enhancing the local surrounding area and attracting long-term tenants who would benefit from both aspects.
Previously known as “the gateway to the city” in London, the 11-story office and retail building that directly overlooks London Bridge has undergone an extensive modern renovation by the joint venture over the past two years.
Today it offers 70,600 sq ft of contemporary office with a full array of amenities to meet the rapidly evolving demands of the post-Covid workplace with flexible floor plates, landscaped terraces on the upper floors and abundant natural light with views to St Paul’s, the City cluster, Monument and onto the River Thames.
A further 30,000 sq ft of lifestyle amenities has been delivered which includes a destination restaurant by Corbin & King of The Wolseley in Piccadilly on the ground floor, a rooftop terrace bar by Maven Leisure and a lower-ground gym by PureGym.
The successful negotiation of a change of use with the City converting the former House of Fraser into a mixed-use office scheme paved the way for the new office accommodation, the construction of a new rooftop bar to enhance the building’s entertainment credentials, followed by extensive renovations to transform the main reception into a dramatic new point of arrival.
Green and healthy building credentials include a BREEAM ‘Very Good’ Rating for Refurbishment & Fit-Out; a green procurement policy prioritizing healthy interior materials; new energy efficient ventilation systems; extensive end-of-trip facilities for cyclists and joggers, and advanced digital infrastructure throughout the building certified by WiredScore.
The building’s new profile and credentials demonstrate Black Mountain Partners and Ares’ ability to re-invigorate important historical landmarks into world-class lifestyle led, office accommodation.
Oliver Corlette, Founder & CEO of Black Mountain Partners, commented: “We are pleased to announce the successful transfer of 68 King William Street to another custodian who also has a similarly long-term investment vision and understands the ethos we were seeking to create with the building. Whilst our investment partnership with Ares originally envisaged being the steward for the remodelled 68 King William Street for the long term, the unexpected and exceptional offer presented to us by the new owner demonstrated the building’s new iconic status. This represents a successful outcome for our investment partnership with Ares and delivers a glittering transformation of an iconic building with new, environmentally sensitive features and an overall office experience that is suitable for the post-Covid occupiers. We are pleased it will remain in good hands for the next generation.”
John Ruane, Partner at Ares and Co-Head of European Real Estate Equity, commented: “We are pleased to have partnered with Black Mountain Partners in the refurbishment of this historic property and execute on our commitment to drive improvements that add value and position the building for long-term success. We believe the Ares Real Estate team’s extensive financing capabilities, quality property investment experience and deep market insights in combination with a creative partner such as Black Mountain, enabled us to transform 68 King William St into a contemporary office destination ready for the new world of work.”
Savills advised the vendor and BNPP Real Estate the buyer.
Fladgate LLP acted for the vendor and Mayer Brown LLP for the buyer.
ABOUT BLACK MOUNTAIN PARTNERS
Black Mountain Partners transform real estate into uniquely desirable places, reflecting modern requirements and elevating occupant wellbeing. Their projects combine a commitment to design excellence with a curated selection of market-leading retail, hospitality and office partnerships. Sustainability is at the heart of their activities, delivering green and healthy buildings that have minimal impact on the environment. For more information visit www.blackmountain.partners
ABOUT ARES MANAGEMENT CORPORATION
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, private equity, real estate and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of June 30, 2021, including the acquisition of Black Creek Group which closed July 1, 2021, Ares Management Corporation’s global platform had approximately $262 billion of assets under management, with approximately 2,000 employees operating across North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com. Follow Ares on Twitter @Ares_Management.
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