The Gutseriev family bought an office in London for £ 18.5 million

The group "Safmar" purchased for 18.5 million pounds office building in London's West End, which houses the headquarters of Zodiak Media. Experts believe that the deal turned out to be beneficial for the Gutseriev family.
Origin source
The group "Safmar" Mikhail Gutseriev in 2017 purchased the office building Gloucester Building in the prestigious London region of Hammersmith for £ 18.5 million, according to data from the consulting company Real Capital Analytics.

Gloucester Building is located in the Kensington Village office complex on Avonmore Road. Now it houses the headquarters of the French company Zodiak Media. The seller of the object was the development company Shaylor Group, its interests were represented by the consulting company Knight Frank. In Knight Frank confirmed that the office was sold to the group "Safmar". In the group "Safmar" did not comment on this information.

According to Graham Harding, Head of the Capital Markets Department of Cushman & Wakefield in London, the Safmar Group became the owner of 20,996 sq. M. feet in the Kensington Village. "The building is the headquarters of the world's largest independent producer of television content," Harding said. According to him, the object showed considerable interest from buyers and held competitive bidding.
Director of PwC to support transactions in real estate Sayan Tsyrenov believes that the value of the transaction looks attractive and the yield exceeds 5%. "The building is fully leased until mid-2021. Potentially, the investor can expect that in the future he will lease this building and at higher rates, which will increase his profitability, "he explains.

According to Stanislav Bibik, partner of Colliers International, the profitability of the building may be in the region of 4-4.5%, and the average net rental rate is at the level of 350-375 per square meter per year. "The price of acquiring an asset is market, the investment market is very active and it is rarely possible to buy an object at a price below the market," he argues. In his opinion, the asset is a small but high-quality building.

Gloucester Building is located in the Hammersmith area in the West End, which is considered the central part of London, although not the most premium. According to Bibik, the market is historically very active, with high demand from investors and tenants.

"We know that some Russian investors are looking for real estate and are bidding for it. Perhaps this signals some changes, and in the near future we should expect further investments in London real estate from Russian investors, "says Graham Harding.

In Russia, "Safmar" is one of the largest owners of commercial real estate. In the Forbes rating "The Kings of Russian Real Estate - 2018", the Gutseriev family took the fourth place: for the year the revenues of "Safmar" from the lease amounted to $ 600 million.