A Dubai-based developer has bought a nine-building Holborn estate from US private equity giant Blackstone for over £135m.
SRG Holding, which has developed major projects in Dubai including Chelsea Tower Hotel & Apartments and the Sheraton Burj Al Salam Towers, has exchanged contracts to buy the High Holborn Estate, WC1.
The freehold estate occupies a one-acre site bounded by High Holborn and Bedford Row housing buildings, which spans a total floor area of 150,000 sq ft.
The estate was put up for sale by Blackstone through CBRE and Savills last year for £130m, reflecting a 4.5% yield.
Blackstone acquired the estate via its £448m purchase of Nick Leslau and Mike Brown’s Max Property Group in July 2014.
Max originally bought the estate for just £45.2m in October 2012.
It began a rolling refurbishment programme of the office buildings, which at the time commanded a low passing rent of £15 per sq ft.
Blackstone has since continued the repositioning, securing a string of new tenants last year at rents in excess of £60 per sq ft.
SRG’s decision to invest in the UK follows that of Damac, another Dubai-based developer, which took on its first London project last year, a major residential tower in Vauxhall.
A source said more Middle Eastern developers were expected to consider diversifying their businesses overseas in part because of the collapse in the oil price which has raised concerns about falling property values in their domestic markets.
LSH advised SRG.
All parties declined to comment.
