by Denis Hall
Postel have committed £90m to the acquisition of the Central Milton Keynes Shopping Building and the funding of Trafalgar House Developments’ mixed scheme at 85 London Wall, EC2.
In Milton Keynes, Postel have paid £60m for both the freehold and leasehold interests in the 1m-sq ft centre. The interests were bought from the Milton Keynes Development Corporation — with whom Postel jointly funded the original project. The investment produces a gross annual income of about £6.4m.
At 85 London Wall, Postel have made a commitment of approximately £30m with the interest being conveyed on a 125-year leasehold at 10% gearing.
The 40,000-sq ft office and retail scheme, where completion is due in July, is situated on the corner of London Wall and Blomfield Street.
“These are very important deals which we have not entered into lightly,” commented Fred Reeder, head of Postel Property Services. “The acquisition of the Milton Keynes Shopping Building in the light of our involvement with the development from the mid-1970s is just good estate management.
“London Wall is a prime office development which we would want to own,” he continued. “The building will lease well and will produce rental growth at the next two rent reviews — which is enough for us.”
Bernard Thorpe advised Milton Keynes Development Corporation, while Edward Erdman acted for Postel. The DOE — which is required by law to approve MKDC transactions of this size — was represented by Healey & Baker.
Knight Frank & Rutley and Smith Melzack & Co acted for Trafalgar House, while Richard Ellis advised Postel.
