Consortium To Redevelop £70M City Of London Office

Alinor Capital Management and UK and Irish real estate investment and asset management firm Lugus Capital have acquired Garden House, a vacant office building in the City of London, in partnership with development partner Pillar Development Management.

Located on Throgmorton Avenue opposite Blackrock’s existing headquarters, the 54K SF building was formerly in use as part of Deutsche Bank’s London Wall campus.

The office will be refurbished and repositioned as a “best-in-class office asset, responding to occupier demand for high-quality, sustainable, and well-connected office space in a supply-constrained market,” according to the companies. This will include improved workspaces, end-of-trip facilities, terraces and an enhanced reception area.

The scheme will target a BREEAM Excellent rating, and upon completion, the partners estimate the building will have a gross development value in excess of £70M.

This is Alinor’s third real estate investment this year. In Manchester, Alinor partnered with Oval Real Estate to acquire One Tony Wilson Place, a 167K SF office building in the city’s First Street district from Aberdeen.

The deal marks a major repositioning play, with the partners committing £34M to a refurbishment programme that will include a new reception, business lounge, gym and roof terrace. The works are expected to complete in 2027.

In Glasgow, Alinor teamed up with Sterling Property Ventures to acquire The Bond on Queen Street in a deal valued at more than £15M. The 145K SF mixed-use building, formerly occupied by Clydesdale Bank, has already undergone an £8.8M refurbishment, delivering new tenant amenities, upgraded Grade A office floors and an A energy performance certificate. The new owners plan further investment, including additional coworking, event and hospitality space, while refurbishing the remaining office floors.

Lugus is a privately held real estate investment and asset management platform based in the UK and Ireland, and the acquisition marks its first major London office deal as the firm adds UK assets to its existing €900M (£778M) portfolio.

“This transaction reflects our continued focus on acquiring high-quality real estate assets in resilient urban markets. We see continued demand for best-in-class, well-connected, and sustainable workspaces,” Alinor Capital Management co-founder and partner Alex Mahler said in a statement. 

“We are continuing to see opportunities both in London and in Dublin and are selectively pursuing opportunities to add to our portfolio,” said Lugus UK Managing Partner James Ghent, who joined Lugus from Goldman Sachs to lead its UK expansion. 

Colliers acted for the seller, with Savills providing investment advice to the purchaser.