Hermes Investment Management has placed the Haymarket home of Tiger Tiger under offer for 23% above its asking price as the market for large-scale West End assets continues to boom.
Hermes fended off stiff competition from bidders including Criterion Capital and a fund managed by UBS, agreeing to pay £160m. The price reflects a circa 3.3% yield.
Land Securities put the 123,000 sq ft Haymarket House, SW1, up for sale in June for £130m, a price which reflected a 4% yield.
The building also includes 81,000 sq ft of offices, which were refurbished in 2012.
Other tenants at Haymarket House include Incisive Media, Zenimax Media and the Comedy Store.
Savills – which is advising Hermes on the purchase – declined to comment on the deal, but the agent’s latest research shows that West End investment transactions hit £3.9bn in the first half of 2015 – a 22% increase on 2014’s £3.2bn and the best half-year on record.
Larger assets in particular are enjoying a bumper year, with £1.9bn of deals over £100m completed in H1 2015 – nearly double the £960m registered in the first half of 2014.
Earlier this month, Hermes selected CIT Group to purchase its major refurbishment opportunity at Finsbury Tower, 103-105 Bunhill Row, EC1, for £107m. The group also invested £50m in a joint venture with Countrywide to buy the 324-flat Baltic Village project in Liverpool from Promenade Estates.
Capital Real Estate Partners is acting for Land Securities.
