Fund manager Frogmore has formed a joint venture with Mike Hussey’s Almacantar vehicle to take a 25% stake in London’s Centre Point building.
The deal, for an undisclosed sum between Frogmore and the central London investment and development company, has been made through Frogmore’s second fund, FREP II.
The acquisition brings the commitment of FREP II to 61%.
Almacantar paid about £120m for the tower, located at the junction of New Oxford Street and Tottenham Court Road, WC1, which it bought from the administrators of a Targetfollow subsidiary in March.
Frogmore’s first fund, FREP I, is a partner with Land Securities in a vehicle called Oriana which owns and is redeveloping a 140,000 sq ft shop prelet to Primark at the eastern end of Oxford Street.
The freehold comprises a mixed-use office, retail and residential complex totalling 244,000 sq ft divided into three Grade II listed elements: the 34-floor Centre Point tower, the Bridge Link and Centre Point House.
Since acquiring the building, Almacantar has increased short-term net income levels by 17%, with the building now almost fully occupied for the second time in its history.
Paul White, Frogmore chairman and chief executive, says: “Centre Point first came on our radar in late 2010. Patient tracking and a strong relationship have now brought this deal to completion and we are delighted to be able to work with Mike Hussey again, who was instrumental in our first deal at Oriana while he was at Land Securities, as well as the rest of the team at Almacantar. Crossrail and the planned public realm improvements will have a significant impact on this iconic building, making it an extremely exciting and strategic acquisition for our second fund.”
Almacantar chief executive Hussey said: “Centre Point requires considerable skill to execute a long-term and sustainable strategy for this iconic asset. Our partnership with Frogmore is the prefect combination to underwrite the building’s future.”
bridget.o’connell@estatesgazette.com
