The recently-refurbished Interchange building in Croydon has been sold to Tristan Capital Partners and CCP5 for £71.5m.
The nine-storey former BT offices, home to Siemens, EDF Energy and Vitality Health, was transformed into Grade A office space by CarVal and Canmoor in 2014.
Peter Mather, managing director of investments at Tristan Capital Partners, said: “This acquisition allows us to capitalise on Croydon’s emergence as a low-cost, high amenity alternative to London’s core office locations.
“The recently refurbished Interchange building is currently the only office located in Croydon offering 10,000 sq-ft plus Grade A space in a prominent location with excellent transport links.”
CarVal Investors, a global investment manager, and development manager Canmoor spent more than £20million renovating the 180,000 sq ft premises after acquiring the building for £8.5million from CBRE Investors in 2013, although CBRE had paid £25.8m prior to the 2008 slump.
Originally occupied by BT in three vertical sections, the converted building was treated horizontally to open up large floor plates, although the refurbishment stopped short of taking out and relocated the cores.
Jody Gunderson, managing principal at CarVal Investors, said: “We are pleased with the successful completion of this transaction.
“The property was acquired when there was almost no quality office space in Croydon and after a comprehensive refurbishment to Grade A, it [has been] leased to a strong mix of tenants.”
The new owners of the Interchange property say the project was attractive due to the fact that Croydon is becoming a must-have alternative to Central London for businesses, and has good train and bus links.
Interchange currently has three vacant floors and rented office space.
Croydon offices expert Vanessa Clark, director of Sinclair Clark, said: “The sale, which shows a remarkable uplift in the value of Interchange, is hot on the heels of other recent international purchases.
“Whilst in part it provides evidence of the weight of money chasing good product, it clearly demonstrates the strong belief from not just existing investors but new investors to the town that Croydon is a prime regional area in which to invest.
“CarVal and Canmoor have delivered a quality refurbishment with a strong lettings campaign throughout with extreme patience.”