Blackstone Bids £330m for Devonshire Square in the City of London

Private equity firm, Blackstone, is reported to be the frontrunner in a bit to buy Aon’s City of London headquarters in Devonshire Square for £330m. If sold, the 600,000sqft business centre will be one of the largest single asses sales in London since the recession.

Devonshire Square, EC2, is located just off Bishopsgate,opposite Liverpool Street Station. The business centre comprises of 12 low-rise office units and was previously owned by Rockpoint and the Abu Dhabi Investment Authority who bought the property in October 2006 for £410m. However, Blackstone’s bid marks the completion of a complicated debt restructuring which saw Rockpoint and ADIA taking a £325m loan.

Devonshire Square currently brings in a rental income of £20m, with current tenants, Aon, accounting for 46% of the rent. Insurance company Aon are set to vacate the business centre in 2016 where they will move to the highly anticipated commercial skyscraper development, known as the Cheesgrater on Leadenhall Street, EC3.

When Aon vacate their current headquarters, Blackstone plan to redevelop the business centre, turning Aon’s vacant space into smaller office space units for small companies, due to it’s strategic location in the Financial District.

Since the economic downturn, Blackstone has been one of the UK’s most prolific property buyers, securing Chiswick Park’s Business Park for £375m and the Mint Hotel chain for over £600m in 2011.

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