KKCG Real Estate Group has completed the acquisition of 1 St James's Square, a West End office building currently occupied by BP as its London headquarters, for £291 million. The freehold property was acquired from Lifestyle International Holdings, with financing provided by LBBW/Berlin Hyp and Aareal Bank. The deal marks a step in KKCG Real Estate Group's strategy to build a portfolio of office assets in central London.
BP is expected to vacate the building in April 2028, after which KKCG Real Estate Group plans to implement the existing planning permission for the site, working with development partner YardNine. The Foster + Partners-designed scheme will redevelop 1 St James's Square into 120,943 sqm net of office space, including 6,684 sqm of outdoor terracing across three floors. The retrofit-led approach will retain the building's existing frame, replace the façade, add two new storeys and a roof terrace, increasing the floor area by 17%. The project is targeting sustainability credentials including EPC A, BREEAM Outstanding, NABERS 5.5 stars and WELL Platinum.
"This acquisition marks an important milestone for KKCG Real Estate Group as we continue to build a focused, well-capitalised platform investing in prime central London real estate," said Peter Holden, CEO of KKCG Real Estate UK. "Our investment approach is patient, disciplined and long term. We understand how workplace expectations are evolving and are committed to creating exceptional environments that meet the needs of occupiers."
"Our strength lies in combining the experience and investment philosophy of KKCG Real Estate Group with the deep local expertise of our London team," said Petr Pujman, Chairman of KKCG Real Estate Group. "We are highly selective in where we invest. Every international opportunity is assessed with the same discipline and long-term perspective that underpins our overall approach to real estate development and investment."
