MGPA's Europe Fund III has partnered US investment manager CarVal Investors and London-based Quadrant to acquire the Telereal Trillium / Royal Mail properties in the City of London. The purchase price was in the region of £35 mln (EUR 40 mln).

The consortium plans to develop 225,000 sq ft (21,000 m2) of offices on the freehold site, for which detailed consent has already been granted. The area is located adjacent to the new Crossrail interchange and existing Moorgate underground station.

This is the third investment in the UK on behalf of MGPA Europe Fund III.

'The investment strategy is to acquire well-located development sites on which a modern, efficient grade A building can be constructed to take advantage of the current window of opportunity for office development in the City of London, given the demand/supply imbalance,' said Laurent Luccioni, Chief Executive of MGPA Europe.

Robert Balick, senior managing director of CarVal Investors, added: 'This investment... is at the right point in the City development and rental cycle, enabling us to provide large, flexible and efficient floor plates at a time when new quality, grade A office will be in short supply in the City.'