Middle Eastern money is poised to return to King’s Cross, with the Qatar royal family under offer to buy a £70m office block.
An office affiliated with the Al Thani family has agreed to pay in excess of the £70m asking price – a 4.7% yield – for One Mabledon Place on Euston Road, WC1.
Also known as the Halo Building, the 10-storey, 90,579 sq ft block was let to The Doctors Laboratory last year (10 May 2014, p37). Its lease runs until November 2029.
Stanhope and Canadian investor AIMCo redeveloped the building, opposite the British Library, last year following the departure of previous tenant, trade union Unison.
The deal marks the Al Thani family’s first commercial investment in north London and cements King’s Cross’ status as an increasingly popular investment destination for overseas money.
It is the first major deal by Gulf-based investors in King’s Cross and Euston since LaSalle Investment Management bought chunks of Regents Quarter in 2005 on behalf of the Abu Dhabi Investment Authority.
The regeneration of the area, once known as a red-light district, is being led by the Argent-led King’s Cross Central Partnership, which is transforming 67 acres in N1. Companies moving there include Google and Louis Vuitton.
Middle Eastern money, as well as cash from the Far East and North America, is also expected to make a play for a 20% stake being offered in King’s Cross Central, which is forecast to raise more than £200m.
JLL was appointed to sell One Mabledon Place in November last year; Savills is advising the purchaser.
All parties declined to comment.
