Soho Estates is understood to have exchanged contracts for a chunk of bookshop Foyles’ portfolio, paying 18% over the £62.5m asking price.
The property empire of the late Paul Raymond has this week exchanged contracts for 125,000 sq ft of Soho buildings from the family owners of Foyles, Noved Investment Holdings.
It is believed to have agreed a deal to pay almost £74m, reflecting a 3.19% net initial yield, or equating to a capital value of £600 per sq ft.
As revealed by Estates Gazette in December, the portfolio was put up for sale with a £62.5m guidance price, reflecting a 3.7% yield.
The properties, some of which are vacant, are Foyles’ flagship store at 111-117 Charing Cross Road, WC2, and mixed-use buildings at 10-14 Greek Street and on Manette Road, both W1.
Soho Estates, along with Realty Estates and Great Portland Estates, had bid for the assets, but the Lee family’s Princeton Investments was initially selected as preferred bidder.
However, the transaction was hit by problems, and Soho Estates has been in negotiations with the vendor ever since. The deal is expected to complete in April.
Foyles will remain in occupation at its flagship store until 2013, when it will move to 107-109 Charing Cross Road, which it bought in March 2011 for less than £30m.
DE&J Levy and H2SO are advising Noved. All parties declined to comment.
joanna.bourke@estatesgazette.com
