GPE has acquired the long leasehold interest at 7/15 Gresse Street and 12/13 Rathbone Place, W1, for £36.5m (£847psf, 5.6% NIY).
The 43,000 sq ft five-storey building has been home to the Fashion Retail Academy since 2005 and will remain in occupation until the precise timing for its relocation to a larger new home is confirmed.
The building will be refurbished to offer high quality, sustainable and beautifully designed flexible offices, for up to 10 occupiers, along with attractive amenity space.
GPE’s flex office portfolio currently provides around 250,000 sq ft of space on Fitted and Fully Managed terms.
Robin Matthews, Investment Director at GPE, commented: "Gresse Street offers a fantastic opportunity for us to reposition these tired buildings with high-quality, fully managed flexible spaces designed with the customer at its heart and in a location that is full of opportunity."
A spokesperson from Next, representing the vendor, said: "We have had a long-standing charitable relationship with the Fashion Retail Academy and are delighted that the proceeds of this transaction will facilitate their expansion and move to their new premises."