The takeover of Hyundai Securities has scuppered the £125m sale of City trophy 21 Lombard Street, EC3.
Japanese private equity firm Orix completed the KRW1tn (£610m) purchase of Hyundai Merchant Marine’s 36% stake in Hyundai Securities last month and it has since decided to terminate several of the firm’s ongoing transactions.
Hyundai was under offer to buy the 115,955 sq ft building from a private client of DTZ for around the £125m asking price – a 4.91% yield – via Knight Frank Investment Management.
DTZ is expected to relaunch the sales process for the building, which is let to UBS, next week.
It is the second time a deal to buy the office has collapsed in the past few months. A private Taiwanese investor originally placed the building under offer last year but failed to complete.
The latest deal had been expected to herald Hyundai’s return to the City market after a two-year absence.
The sale of Hyundai Merchant Marine’s stake in Hyundai Securities was part of parent company Hyundai Group’s strategic plan to sell assets to pay down debt.
UBS’ lease on 21 Lombard Street expires in 2026. It pays a rent of £56 per sq ft, with upward-only rent reviews next year and in 2021.
