Ares Management Acquires London Office Leased to Netflix for £160 Million

Ares Management Corp. Acquires London's Copyright Building for £160 Million

Ares Management Corp. has strengthened its presence in London's office sector with the acquisition of the Copyright Building, located at 30 Berners Street in Fitzrovia, for approximately £160 million ($216 million). This purchase price is slightly below the amount paid by the previous owner, Union Investment, in 2017.

The Copyright Building is currently leased to Capital Business Services, with the entire office space being sublet to Netflix. This acquisition aligns with Ares' strategy of targeting high-quality, well-located assets in London's office sector, which has seen significant rental growth in recent years.

Ares has been aggressively acquiring sites within London's prestigious West End, including assets at 45 Pall Mall and 101 New Cavendish Street. The company believes that the acquisition of the Copyright Building is consistent with its thesis focused on well-located assets benefiting from strong rental growth in Central London sub-markets.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Fitzrovia, situated on the perimeter of the West End commercial market, has become a magnet for investors, with £5.3 billion in deals recorded last year, surpassing the £4.2 billion recorded in the City of London. Other firms, such as Elliott Management Corp. and Strategic Value Partners, have also entered this market, traditionally dominated by institutional funds and wealthy individuals.

Netflix has withdrawn its bid to acquire Warner Bros. Discovery's studio and streaming assets, clearing the path for Paramount to potentially absorb its iconic Hollywood competitor. Paramount has submitted an updated proposal to purchase the full company at $31 per share, surpassing the terms of the existing agreement with Netflix. Netflix declined to increase its valuation, stating that the elevated price point rendered the acquisition "no longer financially attractive."