Blackstone has sold a mixed-use Docklands parade owned previously by Michael O’Flynn’s Tiger Developments to Mercer Real Estate.
Private equity group Mercer has paid £26m – a 6% yield – for the 68,000 sq ft of shops, offices and restaurants at Harbour Island, E14.
Tenants include Co-op, Pret A Manger, Chesterton Humberts, Lloyds Bank and Felicity J Lord Estate Agents. Around 15,000 sq ft remains available. Mercer will refurbish and let the vacant space.
Blackstone acquired the property via its €1.1bn (£770m) purchase of O’Flynn’s €1.8bn of debt from Nama last year.
Blackstone and O’Flynn have since reached agreements that allow the developer’s construction business to take back control of several Irish assets in joint venture with Avenue Capital.
The Tiger UK business has also relaunched after securing agreements with Blackstone to take back several development opportunities, with the backing of BlackRock.
Blackstone has been selling other former Tiger investments which it retained as part of the deal including 9 Clifford Street, W1, which was bought by a private European investor for £38m – a 1.9% yield – in October.
GM Real Estate advised Blackstone.
