Balder acquires London commercial property for €201m

Nordic real estate company Balder has acquired the "wells&more" commercial property in central London's Fitzrovia district from Great Portland Estates (GPE) for £172 mln (€201.2 mln).

wells&more, W1

Balder is set to take ownership of the property in March 2026.

The prominent corner building, located at the junction of Wells Street and Mortimer Street in the West End, offers around 11,000 m2 of lettable space, primarily comprising office premises, along with medical facilities and retail units.

Originally developed by GPE in 2009 and extensively refurbished in 2022, "wells&more" is a high-quality headquarters building. It boasts excellent energy efficiency with an EPC rating of B and has achieved "SKA Gold" sustainability certification. Amenities include a spacious reception area, a business lounge, courtyards, and private terraces.

The property is currently multi-let to tenants such as Heineken, Airwallex, and Brown Forman Beverages, generating approximately £9.2 mln (€10.8 mln) in annual rent with a weighted average unexpired lease term (WAULT) of 5.5 years.

This transaction, supported by real estate Investment Manager Feldberg Capital, was completed at a 5.0% net initial yield, slightly exceeding the property's book value as of September 2025 and about 5% above its March 2025 valuation.

Balder’s CEO Erik Selin said: ”We are extremely pleased to have acquired such a fine building in the fast-growing and popular Fitzrovia district. The area has truly flourished in recent years, and we foresee continued positive development and strong future growth.”

Alexa Baden-Powell, head of investment at GPE, commented: “With the offices now fully let and our business plans complete, the sale of wells&more further demonstrates our ability to recycle capital at the right point in the cycle, delivering strong investment returns while enabling us to reinvest the proceeds across both our acquisition and development pipelines.”

David Turner, CIO at Feldberg Capital, added: “This acquisition reflects our strong conviction in the Central London office market, underpinned by extensive market research and occupational data. The combination of attractive entry yields, significant day-one rental reversion of typically 20-30%, and the potential for further rental growth of more than 25% over the medium term creates a compelling risk-adjusted investment case.”