PRUPIM’s ownership of 1 and 2 Minster Court on the Mincing Lane estate, EC3, is under review following the collapse of US law firm Dewey & LeBoeuf.
The UK fund manager had been preparing the 110,000 sq ft and 190,000 sq ft buildings for sale this autumn, attracting widespread interest from City investors.
But, as revealed by EGi, the collapse of the principal tenant in 1 Minster Court has forced PRUPIM to evaluate the impact on the buildings’ value.
It has yet to decide how to proceed and it has not ruled out a sale. But the law firm’s collapse in May is thought to have had such a big impact on the complex’s value that a refurbishment and reletting is more likely. The buildings could then come to market in 12-24 months’ time.
Agents have long speculated about the availability of the buildings, which adjoin the 300,000 sq ft London Underwriting Centre at 3 Minster Court.
PRUPIM also owns the freehold to the LUC, but a joint venture between Bankhaus Woelbern & Co and Santander owns a 999-year long leasehold.
The German bank instructed Strutt & Parker to sell its share in the development for £81.3m, a circa 8% yield, last November.
Santander has also previously considered selling its stake, appointing Gresham Down last summer.
Hines had considered a £100m bid for Santander’s stake.
Spring 4 and CBRE are letting agents on 1 and 2 Minster Court. PRUPIM declined to comment.
