QuadReal Property Group, one of Canada’s largest real estate investment management companies, and Seaforth Land, a London-based institutional capital investment partner, are in advanced discussions to buy two Midtown redevelopment opportunities for around £200m.
QuadReal, which was set up in 2016 to manage the CAD18bn (£10bn) real estate investment arm of British Columbia Investment Management Corporation, is backing Seaforth Land to make the acquisitions of Almacantar’s CAA House, WC2, and the long leasehold interest in Transport for London’s Kingsbourne House and 88 Kingsway, WC1.
The pair is in advanced discussions to buy CAA House, WC2, the 230,000 sq ft office building which the Civil Aviation Authority fully occupies on a lease expiring at the end of 2019. The price agreed is circa £160m. Almacantar’s process to find a shareholder or potential buyer for the £2bn business, is ongoing. However, it continues to consider the selective sale of single assets.
QuadReal and Seaforth Land, advised by JLL, have also placed the 150-year leasehold of 88 Kingsway and Kingsbourne House under offer for around £50m – a net initial yield of circa 4.5%.
TfL appointed Knight Frank last year to sell the long leasehold of the asset, known as Holborn Central, in order to generate revenue to reinvest in the transport network.
Together, the two buildings comprise 61,479 sq ft of offices and 4,801 sq ft of retail above and alongside Holborn Underground station.
The deals are understood to be the first UK investments since QuadReal was established. British Columbia Investment Corporation’s UK real estate investments include a stake in 22 Bishopsgate, EC2, the 62-storey City tower under development.
QuadReal is led by chief executive Dennis Lopez, the former global chief investment officer of AXA Investment Managers – Real Assets, who joined the business last year.
Seaforth Land is led by Canadian founder and chief executive, Tyler Goodwin, the former chief executive of Lodha Developers’ UK business.
The company specialises exclusively in central London commercial real estate with a strong bias towards value-investing in buildings that can be repositioned to appeal to London’s rapidly growing creative industries.
A Seaforth Land spokesman said: “We do not comment on market speculation.”
QuadReal, TfL, Almacantar, Knight Frank and JLL declined to comment.
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