The Crown Estate is in talks to buy a 50% stake in Land Securities Princesshay scheme in Exeter as it continues to diversify its portfolio. The organisation that manages property formerly owned by the monarchy is eyeing a new leasehold interest in the 530,000 sq ft scheme which was valued at £225m when it was completed in September 2007. The stake – which is thought to be worth less than £100m and reflects a yield of less than 8% – will entitle the Crown to 50% of the income from the scheme. This month the Crown also sold its freehold of Atlantic House on Holborn Viaduct, which is let to law firm Lovells, to German fund Deka, which already owns the long leasehold. CB Richard Ellis advised the Crown; Savills advised Deka. It also plans to sell three freeholds of properties it owns on Farringdon Street in the City of London as well as non-core regional assets. In Edinburgh, it is in negotiations to sell New Uberior House, which is let to HBOS, for around £55m. A German fund has placed the building under offer at a yield of 6.75%. DTZ advises the Crown. The Crown plans to lessen its dependence on the capital. Around 80% of its existing £4.4bn urban portfolio is in central London. It plans to reduce this to 60% in the medium term.
The Crown Estate is in talks to buy a 50% stake in Land Securities Princesshay scheme in Exeter as it continues to diversify its portfolio. The organisation that manages property formerly owned by the monarchy is eyeing a new leasehold interest in the 530,000 sq ft scheme which was valued at £225m when it was completed in September 2007. The stake – which is thought to be worth less than £100m and reflects a yield of less than 8% – will entitle the Crown to 50% of the income from the scheme. This month the Crown also sold its freehold of Atlantic House on Holborn Viaduct, which is let to law firm Lovells, to German fund Deka, which already owns the long leasehold. CB Richard Ellis advised the Crown; Savills advised Deka. It also plans to sell three freeholds of properties it owns on Farringdon Street in the City of London as well as non-core regional assets. In Edinburgh, it is in negotiations to sell New Uberior House, which is let to HBOS, for around £55m. A German fund has placed the building under offer at a yield of 6.75%. DTZ advises the Crown. The Crown plans to lessen its dependence on the capital. Around 80% of its existing £4.4bn urban portfolio is in central London. It plans to reduce this to 60% in the medium term. bridget.oconnell@rbi.co.uk
