MEPC is buying the freehold of Woolgate House, Coleman Street, London, EC2, for £75m. However, the purchase price is not due to be paid until December 2001.
According to MEPC director Julian Barwick, the deal is conditional on obtaining planning consent and finding funding and occupiers. MEPC intends to submit a planning application for around 33,000 sq m (355,000 sq ft) by the end of the year. There are already 29,728 sq m (320,000 sq ft) of offices on the site. In 1994 the Corporation of London granted consent for an additional 2,322 sq m (25,000 sq ft).
However, if the conditions of the purchase are not fulfilled, the property will revert to Chase Manhattan, which bought it from Scottish Amicable Life Assurance and PGGM for an undisclosed sum.
David Hunter, Property Director at ScotAm, explained the rationale behind the sale: “When we purchased this building we were attracted by the combination of the high income return from Chase and the obvious redevelopment angle. The investment has been a strong performer but, given current market conditions in the City, the joint owners now recognise that the time is right to trade it on.”
Chase Manhattan has occupied 23,346 sq m (251,300 sq ft) in the building since 1964, but this became surplus to requirements following the merger of Chase and Chemical Banks earlier this year.
EGi News 30/10/96
