District’s client Blackstone increase asset value of Chiswick Park by a whopping £450m

Blackstone recently sold the last building they owned at Chiswick Park making a total profit on their initial investment of £450m in just nine years.

Blackstone acquired the Chiswick Park business park for £480m back in 2011 and had sold most of the buildings three years later to the China Investment Corporation for £780m. 

The final building ‘building 7’ was sold back to the previous owner Stanhope in part of  “A drive to build up its asset management platform.” according to Property Week. Blackstone secured £310m for the final building.

In 2013, Blackstone invested £80m in refurbishing building 7, which was considered a risky investment at the time by The Telegraph due to its location out of central London. They weren’t the only ones to point out the risky investment. According to Biznow, when Blackstone purchased the Chiswick Park site back in 2011 it was considered ‘“a bit of an anomaly” and “hardly sexy”. 

Fast forward to today and experience-led Blackstone has beaten all odds, increasing asset value on the original sales price of the building park by almost half a billion. Blackstone has tapped into tenants needs in today’s changing marketplace that’s being turned on its head by the rise in flexible workspace. Commercial real estate owners need to put experience and added value at the top of the agenda in a more user-driven market than ever before.

In an article by Biznow back in 2017, Director Ed Hodgson said: “One thing we’ve done which might be to the detriment of upfront income is take the best spaces in a building and make them a communal area, tenants think, I’m not paying for this but I am getting the benefit of it, and it creates a point of difference. We want someone like me to have the same experience of a building as the chief executive. We are trying to push people towards these spaces.”

Blackstone also worked with District Technologies to launch their very own white-labelled tenant experience app for Chiswick Park, providing completely free use of the app for tenants. In Biznow’s article, senior portfolio manager Danny Egan said: “It’s a free benefit that allows us to create a network that’s beneficial for our tenants.” The app connected Chiswick Park’s amenities and services and allowed tenants to connect with each other.

This user-led strategy has paid off for Blackstone, who maintained almost 100% occupancy of their site at Chiswick Park and their recent sale securing a whopping profit. 

Click here to find out more about the benefits of a tenant experience app for your workplace.

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