US investment group Atlas Capital is the frontrunner to buy Carlyle Group’s 184,000 sq ft speculative City office scheme.
Jeffrey Goldberger and Andrew Cohen, the two former UBS bankers who run Atlas, are leading the final shortlist of three to forward fund 107 Cheapside, EC2.
A source said Atlas was “in the driving seat” after offering close to £160m for the development, which Carlyle is forward selling with a £16m rental guarantee over a two-year period (2 September, p21).
However, rival bids from investment group CIT and a private Irish investor are still under consideration, should the deal with Atlas fall through.
Atlas’s bid follows renewed interest from North American investors for central London buildings this year.
In June, Atlas fronted a US syndicate that included Westbrook Partners in the £206m acquisition of Cannon Bridge House, EC4, while US opportunity fund Beacon Capital last week confirmed that it had paid £80m for half of Land Securities’ 560,000 sq ft shopping-centre scheme at One New Change, EC4.
One New Change was Beacon’s second UK acquisition, after setting aside $2.5bn to spend in London and Paris (15 April, p18). The fund is now being linked with Swiss Re’s £600m Gherkin — 30 St Mary Axe — for a major trophy investment.
James Beckham, head of City investment at King Sturge, said: “There is a lot of interest from North America — and not just from the US but also from Canadian funds like Fairview Cadillac and Canada Life.
“They have a pan-European drive, but London is more transparent and landlord-friendly and overtly has the strongest rental growth prospects than any other European capital city.”
GVA Grimley is advising Carlyle; CB Richard Ellis is acting for Atlas.
