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KKCG Real Estate Group has completed the acquisition of 1 St James's Square in London's West End for £291 million. The freehold building is currently occupied by BP as its London headquarters.
The seller was Lifestyle International Holdings. Financing was provided by LBBW/Berlin Hyp and Aareal Bank.
The deal represents a significant step in KKCG's strategy to build a portfolio of prime central London office assets.
What Happens When BP Leaves
BP is expected to vacate the building in April 2028. KKCG will then move forward with an existing planning permission for the site.
Development partner YardNine will work alongside KKCG on the project. The scheme was designed by Foster + Partners. It takes a retrofit-led approach:
- Existing building frame retained
- Façade replaced entirely
- Two new storeys added
- New roof terrace created
- Total net office space: 120,943 sqm
- Outdoor terracing: 6,684 sqm across three floors
- Floor area increase: 17%
The project is targeting a full suite of sustainability credentials. These include EPC A, BREEAM Outstanding, NABERS 5.5 stars and WELL Platinum a combination that positions the redeveloped building at the very top of London's Grade A office market by specification.
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KKCG's Investment Philosophy
Peter Holden, CEO of KKCG Real Estate UK, said the acquisition marks an important milestone for the group as it builds a focused, well-capitalised platform investing in prime central London real estate.
He described the approach as patient, disciplined and long term.
He added that the team understands how workplace expectations are evolving and is committed to creating exceptional environments that meet the needs of modern occupiers.
Petr Pujman, Chairman of KKCG Real Estate Group, said the group's strength lies in combining its experience and investment philosophy with the deep local expertise of its London team.
He said every international opportunity is assessed with the same discipline and long-term perspective that underpins the group's overall approach. KKCG is highly selective, he said.
That selectivity is visible in the choice of 1 St James's Square a freehold asset in one of London's most prestigious addresses, with vacant possession coming in 2028 and a planning-consented Foster + Partners retrofit already waiting to be delivered.
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Why the Timing Makes Sense
Acquiring a consented, freehold West End asset while a major occupier is still in place and has a fixed vacation date is a low-risk entry into a development cycle.
KKCG does not need to source planning permission. It does not need to wait for the site to clear. It enters with certainty on both the timeline and the development outcome.
For a patient, long-term investor, that profile is close to ideal. London's prime office market is tightening. Supply of best-in-class, sustainability-credentialed space remains constrained.
By the time 1 St James's Square is ready for occupiers, the market it is targeting may be considerably tighter than it is today.
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