Derek Quinlan is likely to extend his holdings in London’s Knightsbridge after his £540m acquisition of the 3.5-acre BP Pension Fund estate this week.
The Dublin-based former tax inspector is eyeing properties surrounding the estate, situated between luxury department stores Harvey Nichols and Harrods, as well as planning to develop existing opportunities within the site.
“There are a number of properties we would like to get our hands on,” said a Quinlan Private insider. “This is a significant estate and there are an awful lot of opportunities for further development.”
Richard Womack, director of central London investment at BP’s adviser CBRE, said: “There are fantastic opportunities for redevelopment of the north-east part of the estate, which is all freehold with the leases expiring in 2016, and none of the buildings is listed.”
A total of 15 bids were submitted in the first round of the battle for the BP estate. Four of those on the shortlist bid over £500m £75m more than the asking price.
Quinlan, advised by Dalgleish, had to sign the deal by Monday evening, when the estate was due to be offered back to a rival bidder. He beat Dublin-based David Arnold, Northern Irish property developer William Ewart, the Abu Dhabi royal family and an unnamed Kuwaiti family.
The purchase reflects an initial yield of less than 4%, although there are outstanding rent reviews that will take the yield to just over 4%.
The deal is the second large purchase for Quinlan in the capital this week. His firm also bought 165-169 New Bond Street, home to jewellers Asprey & Garrard, for £100m.
References: EGi News 22/04/05
