Shortly after securing a £20m facility with National Westminster Bank, Property Holding & Investment Trust have exchanged contracts to buy 90-95 Wimpole Street, 25 Wigmore Street and 1-2 Welbeck Street, W1, for £14.7m cash, their biggest purchase.
The purchasers were advised by Allsop & Co, but neither the agents or PHIT are revealing any details on the identity of the vendor – though it is rumoured to be a pension fund.
The properties are let on two long leases to Debenhams at a rent of £1,101,500 pa with reviews due to 1988 and 1989. Total net floor area is about 116,000 sq ft and is predominantly offices, though there is some shop, showroom and banking space.
The move is seen in the market as an attempt to gear up in the face of recent takeover gossip. However, one City analyst said the “purchase only improves gearing to 16%”.
While on the face of it the purchase is a long-term investment, speculation about the future of Debenhams since the Burton takeover indicates the possibility of a major redevelopment.
PHIT chairman Arthur Young’s efforts to gear up may be aimed at deflecting bids, but the purchase could add to the bait.
Among PHIT’s other assets are substantial holdings in Covent Garden, their 80,000-sq ft redevelopment of 35-36 Basinghall Street, EC2, a mixed development opposite the Pheasantry in Chelsea’s King’s Road, SW3, and a possible 80,000-sq ft office scheme in Redhill.
