A pair of hedge funds have struck real estate deals in some of London’s priciest locations, both in areas not known for attracting investors from the hedge fund world.

HIG has taken a £60M preferred equity stake in the £350M redevelopment of 20 Carlton Terrace in St James’s, CoStar reported.

The redevelopment has been recapitalised by owner Clivedale, CoStar said. Deutsche Bank has provided a £170M development loan, with HIG providing its preferred equity stake to fund the redevelopment as well.

Clivedale bought the 1970s building for £100M in 2018, and it is planning a new 162K SF office scheme, scheduled for completion in 2023.

Half a mile to the north, Colman Partnership is buying 149-151 Oxford Street for about £55M, React News reported. The 32.5K SF building includes a 20K SF store leased to discount retailer Matalan, plus offices and residential units.

Colman invests primarily on behalf of rich Singaporean and Hong Kong investors, and the deal is part of a £300M London spree, React said. It is also in talks to buy a 103K SF office building at 40 Strand from Landsec for £205M; and 6-10 Market Place, adding three retail and office buildings in Fitzrovia totalling 18K SF, for £27M from Great Portland Estates.