Arora Group Acquires Metro Building in Hammersmith for over £20m

Why It Matters

The purchase adds a high‑specification asset in a prime West London hub, offering Arora a platform to generate strong yields and reshape office space amid a shifting commercial real‑estate market.

Key Takeaways

• Arora Group acquires Metro Building for £20m
• Deal includes partnership with Deva Capital
• 105,237 sq ft total, 63,250 sq ft currently let
• Potential rent rise to £3.85 m annually
• Projected running yield of 18%

Pulse Analysis

London’s office market has been under pressure, yet prime locations like Hammersmith remain attractive to opportunistic investors. By buying the Metro Building from fixed‑charge receivers, Arora Group capitalises on a distressed asset at a discount, positioning itself to benefit from the area’s strong transport links and growing demand for flexible workspaces. The partnership with Deva Capital, backed by Santander Alternative Investments, provides the financial muscle and sector expertise needed to execute refurbishment or alternative‑use strategies, enhancing the building’s value proposition.

The Metro Building’s existing tenancy covers roughly 60% of its floor area, delivering immediate cash flow while leaving room for lease optimisation. Analysts estimate that a conservative leasing approach could lift annual rental income from £2.627 million to £3.85 million, translating into an 18% running yield—significantly above market averages for comparable assets. Such yield potential makes the acquisition a compelling addition to Arora’s portfolio, aligning with its strategy of acquiring high‑specification properties that can be repositioned for higher returns.

Beyond the financial metrics, the transaction signals confidence in West London’s long‑term commercial outlook. As companies reassess space needs post‑pandemic, assets that can adapt to hybrid work models or mixed‑use configurations are in demand. Arora’s intent to refurbish and possibly diversify the building’s use could set a precedent for similar distressed office assets across the city, encouraging further investment activity and contributing to the revitalisation of London’s office stock.

Deal Summary

Arora Group, together with Deva Capital, has acquired the 11‑storey Metro Building in Hammersmith, West London, from fixed‑charge receivers. The office block, spanning 105,237 sq ft, was on the market for over £20 million. The sale was facilitated by Watling Real Estate and Cushman & Wakefield.