Resolution Property has returned to the City with the purchase of a HQ building that has seen three previous attempts to buy it fall through.
Robert Laurence’s company was in final negotiations this week with Vincent Tchenguiz’s Consensus Group to buy Senator House on Queen Victoria Street, EC4.
It has offered £104m, reflecting a 6.5% yield.
Resolution’s purchase of the 155,000 sq ft building let to law firm Eversheds will mark a return to the City.
It exited last year with the sale of the 474,000 sq ft Little Britain complex on 200 Aldersgate Street, EC1, for £210m.
At the time, it said the City recovery was not as strong as it had hoped.
Resolution investment director Robert Wolstenholme declined to comment on the deal, but admitted the firm was looking to return to the City.
“A year ago we did have some concerns about the recovery of the City of London office market being delayed to 2008-09,” he said.
“But the supply of 20,000 sq ft floorplates has really dwindled, so there aren’t many buildings that can meet that kind of requirement in the City.”
Eversheds has lease breaks at Senator House in 2008 and is considering a move to Land Securities’ 1 Wood Street, EC2.
A source added: “This building has become a property play. It initially attracted highly leveraged investors who wanted Eversheds to remain.
“But confidence is now returning and it offers several opportunities. The worst case scenario now is for Eversheds to stay.”
Consensus put Senator House up for sale nine months ago after buying it as part of the £300m Challenger portfolio. During that time, three potential deals have collapsed.
Closed-ended German fund SachsenFonds, Israeli investor Igal Ahouvi and Henderson Global Investors all attempted to buy the building, but failed to complete their acquisitions.
Gerald Eve and Knight Frank advised Consensus; Allsop acted for Resolution.
References: EGi News 07/04/06
