Canadian property giant Brookfield is preparing to make its largest single-asset deal in London for more than five years.
The firm has gone under offer to buy Broadgate West, EC2, from Peter Marano’s Gemini Commercial Investments for more than £300m – a 6% yield.
The deal to buy the 460,000 sq ft office complex marks the first major acquisition for Brookfield since it bought a 50% stake in Great Portland Estates’ 100 Bishopsgate, EC2, for £43m in April 2010. The 900,000 sq ft, 40-storey tower was officially launched last month.
Brookfield’s only other large direct real estate holding in London is the 555,000 sq ft 20 Canada Square, E14.
Over the past few years, the firm has been primarily a seller in the UK, disposing of its share in Brent Cross Cricklewood, a £4.5bn development in west London, and a number of retail investments it acquired as part of its takeover of Multiplex.
Ric Clark, Brookfield’s chief executive, told Estates Gazette that the company was “actively pursuing” investment opportunities in London.
Martin Jepson, who joined the firm this month, is also keen to make a big impact following his departure from Hammerson in July.
Knight Frank partner Nick Braybrook said: “This is another example of the very strong overseas focus on London, particularly for the better quality assets.
“There have been few times in the City market when the overseas interest has been so strong and so broad, with investors from the Middle East, Far East, Europe and North America all targeting London real estate as a safe haven with the added benefit of potential currency appreciation.”
Brookfield, which has a global portfolio valued at almost £100bn, employs 100 people in London involved in infrastructure, fund relationships, fundraising, advisory and securities, as well as construction.
The company is also the largest shareholder in Canary Wharf Group after trying to buy the company outright in 2004.
CBRE is advising on the sale.
james.buckley@estatesgazette.com
