Queensgate Investments is preparing to sell London Executive Offices for £475m – falling short of the portfolio’s £700m valuation in 2016.
Queensgate said the sale has resulted in a gross return of “around 3.0x” to Queensgate fund investors.
The buyer, a family investor based in Asia, is being advised by HFF. It marks the firm’s first buy-side role in a UK corporate finance deal.
The takeover deal was struck by Rothschild, following two previous attempts from Lazard and a joint team of advisers from Citi and HSBC respectively.
Queesngate, backed by LJ Partnership, had put the portfolio of 33 serviced offices on the market through Lazard in 2016.
However, the private equity firm hired Citi and HSBC to find a buyer after parting ways with Lazard in 2017.
The 900,000 sq ft portfolio includes 33 St James’s Square, SW1, Central Court, 1 Cornhill, EC3, 78-79 Pall Mall, 53 Davies Street, W1, 2 Eaton Gate, SW1, 84 Brook Street, W1, Hudson House, 288 Bishopsgate, EC2, 16 Old Queen Street, SW1, and 17 Cavendish Square, W1.
Queensgate bought the company for £260m in 2013 from Morgan Stanley. It was previously called Executive Offices Group. At that point the company generated around £80m of revenue from 2,200 customers per year.
Jason Kow, chief executive of Queensgate, said: “The LEO sale highlights QI’s proven ability to buy defensively and create value through multiple income and capital levers for our investors.”
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