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Netflix's London HQ Sold for $216M
27 Feb
Summary
- Ares Management acquired the Copyright Building in London for £160 million.
- The building is fully sublet to Netflix, signalling investor confidence.
- Fitzrovia recorded £5.3 billion in deals last year, surpassing the City of London.
Ares Management Corp., based in Los Angeles, has completed the acquisition of the Copyright Building in London's Fitzrovia district for an estimated £160 million ($216 million). This prime office space, located at 30 Berners Street, is entirely sublet to streaming giant Netflix, though officially leased to Capital Business Services.
The purchase price is slightly lower than what the previous owner, Union Investment, paid in 2017. This strategic move by Ares reflects a broader trend of alternative investment firms showing persistent confidence in London's commercial real estate market. These firms are capitalizing on opportunities in properties overlooked during the pandemic-induced remote work era.
Fitzrovia, situated on the edge of the West End market, has become a magnet for investors. Last year, the district saw £5.3 billion in property deals, surpassing the £4.2 billion recorded in the City of London. Ares itself has been active in acquiring West End assets.
Other firms like Elliott Management Corp. and Strategic Value Partners are also investing in this market. They are betting that a scarcity of new developments will drive up both rental rates and occupancy, despite a traditional focus on long-term rental revenue over immediate yields.
