Malaysian construction and property group Gamuda and UK-based real estate private equity investor Castleforge Partners have acquired Winchester House for £257m.

The eight-storey commercial building is owned by Wessex Winchester Propco, which is being acquired by Venta Belgarum II, in which Gamuda Land holds a 75% stake and Athelstan owns the remaining 25%.

Deutsche Bank is currently the tenant at the building but will move to 21 Moorgate as its lease expires in April 2024.

Gamuda plans to refurbish the property and convert it into a sustainable ESG office space. The group expects to dispose of the property after five years or less.

The proposed acquisition is expected to be completed by May 2023.

Michael Kovacs, Founding Partner of Castleforge commented: “Winchester House is a landmark acquisition for Castleforge and the City. Working with Gamuda, we are confident that we will see this space transformed to trailblaze a new class of amenity rich and sustainable offices in the area.

“This is a very exciting development not just for us but for potential future tenants looking to collaborate in the best office space available, right in the heart of London. Doing so makes for better business and helps firms meet their ESG targets. We look forward to progressing to the next stage of planning for this prime location.”

Chu Wai Lune, Chief Executive Officer of Gamuda Land added: “The acquisition of Winchester House is a strategic opportunity which is part of our Quick Turnaround Project (QTP) portfolio as we further expand our property development investment in the UK. This urban regeneration project is a compelling undertaking in a highly sought-after location in Central London. With the aim to achieve the highest level of ESG accreditations (BREEAM Outstanding); Winchester House will make a mark in the growing demand for Grade A ESG office.”

Jonathan Lurie, Managing Partner at Realty Corporation, commented: “A reimagined Winchester House delivers a world-class office product, and is a strong vote of confidence in the competitiveness of the City as the unrivalled hub of global commerce and finance. Consistent with our conviction investment theme of delivering world-class office space that leads the way with environmental credentials and superior design, Winchester House cements our continued relationship with Gamuda Berhad to deploy capital into compelling development opportunities.”

Daniel Gaunt, Central London Investment director at Savills, commented: “The acquisition of Winchester House by our clients represents a landmark transaction in the Central London market. Situated within 200 metres of Liverpool Street station, the future scheme will provide high quality sustainable offices that will appeal to a broad spectrum of major corporate occupiers all looking to meet their organisation’s increasingly stringent ESG targets.”

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