Multi-million-pound deals boost for West End

News

09 January 1993

And a private German investor has paid just over £40m for the 188,000sq ft office and retail building at Cambridge Circus, WC2, which Banque Bruxelles Lambert acquired following the collapse of Land & Property Trust.

The initial yield on United Kingdom House is about 10%. Credit Suisse First Boston occupies all but 21,000 sq ft of the 157,940-sq ft building on long leases which expire in 2009 and 2013.

Chesterfield Properties chairman Roger Wingate said that CreditSuisse’s plans to move to Canary Wharf this year had not been a significant issue in the deal. “Their lease has got years to go and if they want to move out it’s their problem,” he said.

Anfield acquired the property in 1987 for £47m, although the sale price is 18% less than its December 1991 book value. The passing rent equates to about £40 per sq ft overall.

Included in the contract is a contingent liability on Anfield of up to £1.5m to cover the possiblity that reviews due in 1994 will not achieve the expected rental levels. The leases have provision for upwards and downwards reviews.

Richard Ellis acted for Anfield, which is 40% owned by Capital & City Holdings. Debenham Tewson & Chinnocks advised the purchaser.

At Cambridge Circus, the German purchaser represented by Savills has acquired the property at an initial yield of 11.5%. BBL originally put it on the market in June 1991 at £60m, having granted a short-term loan of £92.7m secured on the property in 1989.

Richard Ellis advised BBL, which is in the middle of a lengthy High Court case with Eagle Star over the Land & Property Trust loans. Eagle Star is refusing to honour mortgage indemnity policies taken out by BBL in 1989.

Stephen Hubbard at Richard Ellis said that the revival in the London investment market was powered by the devaluation of the pound and lower interest rates, with new money coming in from the Middle East and Europe. “There is a general perception that the market has bottomed out,” he added.

Two West End deals together worth more than £125m have given the investment market a flying start to 1993. Private company Arrowhead Properties has paid £85m for United Kingdom House in Oxford Street, W1, owned by Chesterfield Properties subsidiary Anfield Properties. And a private German investor has paid just over £40m for the 188,000sq ft office and retail building at Cambridge Circus, WC2, which Banque Bruxelles Lambert acquired following the collapse of Land & Property Trust. The initial yield on United Kingdom House is about 10%. Credit Suisse First Boston occupies all but 21,000 sq ft of the 157,940-sq ft building on long leases which expire in 2009 and 2013. Chesterfield Properties chairman Roger Wingate said that CreditSuisse’s plans to move to Canary Wharf this year had not been a significant issue in the deal. “Their lease has got years to go and if they want to move out it’s their problem,” he said. Anfield acquired the property in 1987 for £47m, although the sale price is 18% less than its December 1991 book value. The passing rent equates to about £40 per sq ft overall. Included in the contract is a contingent liability on Anfield of up to £1.5m to cover the possiblity that reviews due in 1994 will not achieve the expected rental levels. The leases have provision for upwards and downwards reviews. Richard Ellis acted for Anfield, which is 40% owned by Capital & City Holdings. Debenham Tewson & Chinnocks advised the purchaser. At Cambridge Circus, the German purchaser represented by Savills has acquired the property at an initial yield of 11.5%. BBL originally put it on the market in June 1991 at £60m, having granted a short-term loan of £92.7m secured on the property in 1989. Richard Ellis advised BBL, which is in the middle of a lengthy High Court case with Eagle Star over the Land & Property Trust loans. Eagle Star is refusing to honour mortgage indemnity policies taken out by BBL in 1989. Stephen Hubbard at Richard Ellis said that the revival in the London investment market was powered by the devaluation of the pound and lower interest rates, with new money coming in from the Middle East and Europe. “There is a general perception that the market has bottomed out,” he added.