International fund managers and investors have started the new year with a City spending spree.
Beaufort House, in St Botolph Street, London, EC3, is under offer to US fund manager Westbrook.
A price of around £300m is believed to have been agreed for the building which is owned by Lafico, the investment arm of the Libyan government.
Sources believe that talks between the owner and Westbrook – who made an off-market approach – broke down in mid-December when Lafico rejected an offer of around £280m.
Sources also thought the state of Dubai’s DP World through subsidiary P&O were in the running before the Westbrook deal was agreed.
The Libyan government paid £130m for the building in the heart of the City in 1993 in what was the biggest such property deal in the Square Mile that year.
Meanwhile, Irish investors are rumoured to be leading the bidding for Merrill Lynch’s European headquarters.
The investment bank is currently in negotiations with a number of investors with an Irish consortium thought to be frontrunner – to carry out a sale and leaseback of its 560,000 sq ft Merrill Lynch Financial centre on 102-105 Newgate Street, London, EC1.
Two deals that concluded before Christmas also involved investors from Ireland and America respectively.
Menolly Investments – a wholly-owned commercial property subsidiary of Irish millionaire Seamus Ross’s residential company Menolly Group – has purchased an 184,000 sq ft speculative office scheme at 107 Cheapside, London, EC2.
The £150m deal was agreed after a £160m deal with US investment company Atlas Capital fell through in November last year.
The scheme’s owner, the Carlyle Group, was then offering a £16m rental guarantee over two years as part of a £155m forward sale of the scheme.
Atlas went on to conclude a deal with Morley Fund Management to take a 50% stake in its 327,166 sq ft office-led development at 20 Gracechurch Street, London, EC3, for £100m before Christmas.
CBRE advised the purchasers on both deals.
References: EGi News 04/01/07
