Billionaire Karel Komárek Positioned for Second London Buy

A Czech billionaire is increasingly gaining a stronghold in the London office space.

KKCG, an investment group led by billionaire Karel Komárek, submitted a £282 million (~$379 million) bid for 1 St James’s Square in the United Kingdom capital, according to Bisnow. YardNine is a development partner in the bid, which was first reported by Green Street News.

While KKCG is believed to be the frontrunner in the bidding, no deal with potential seller Lifestyle International Holdings has been struck. The Hong Kong based-company could ultimately hold on to the high-profile office and redevelop it.

Lifestyle International acquired the building in 2020 for £250 million after a bidding war. JLL and CBRE have explored options for the building, shooting for a valuation of £350 million.

Other bidders to reportedly be involved in the final stage of offers for the office include Pembroke, Sixth Street with LBS Properties and a private Vietnamese investor. Brookfield, Blackstone, J.P. Morgan Asset Management, Delancey and Australian superannuation investor Aware Super have also kicked the tires on a bid.

The 104,000-square-foot building is the London headquarters for energy giant BP, though it is set to depart in April 2028 after a recent long-term extension was reached. The property is a prominent redevelopment target after the Westminster City Council approved plans for a repositioning of the building.

Komárek’s profile has been rising in the London office market.

A few months ago, Hines sealed a roughly £195 million sale of a prime West End mixed-use building to U.K. National Lottery operator Allwyn Entertainments; corporate filings indicate the buyer is tied to Komárek, whose investment group controls Allwyn.

That asset comprises roughly 10,000 square feet of retail space fronting New Bond Street and about 31,000 square feet of offices above. Retailer Abercrombie & Fitch anchors the ground floor, while the offices are leased to a mix of financial and corporate occupiers, including Allwyn itself.

— Holden Walter-Warner