A Hines and HSBC Alternative Investments Limited joint venture has completed the purchase of Broadgate West, EC2, after more than a year of negotiations.
The JV is thought to have paid Peter Marano’s Gemini Commercial Investments under £290m for the 457,000 sq ft office complex on the northern edge of the Broadgate estate.
The complex is made up of a 10-storey 243,000 sq ft building completed in 2000 and a 12-storey 214,000 sq ft building completed in 2003.
The development also has planning permission for a third 450,000 sq ft phase.
Both buildings are fully let to tenants including Ashurst, GFI, Shearman & Sterling and UBS with a rent roll of £19.4m pa for a further nine years.
It is the first time US developer and investor Hines has teamed up with HAIL.
The deal follows more than a year of negotiations which saw Hines first move for Broadgate West in July 2011 offering a 60:40 debt-to-equity arrangement, reflecting a 6% yield before Brookfield moved in and put the complex under offer.
But Brookfield walked away from the deal in December and leaving underbidder Hines open to make a second attempt in February this year.
Negotiations have been ongoing ever since with the turbulent financial markets thought to have hampered attempts to get finalise the details.
MetLife provided debt for the JV, which was advised by Colliers.
Hines managing director Ross Blair said: “We are delighted to have closed this acquisition in Hines’ first joint venture with HAIL, and we look forward to working together on these exciting buildings.
“We are strong believers in the City office market, and Broadgate West’s impressive tenant roster is testament to the quality of the asset. There are some additional high-profile restaurants due to open in the building soon, and these will further enhance the appeal of this micro location.”
On off-shoot of HSBC’s private banking arm, HAIL has a track record of buying trophy assets in global cities but the deal represents its first major foray into London.
Head of real estate fund management Paul Forshaw said: “The acquisition of Broadgate West in joint venture with Hines fits our strategy of investing in high-quality office buildings with credit-worthy tenants alongside strong local asset management partners.”
Gemini was advised by CBRE.
Jack.Sidders@estatesgazette.com
