Shaftesbury is understood to be buying fashion retailer Jaeger’s HQ as part of a £185m investment plan for its core West End villages.
The REIT has gone under to offer to buy Jaeger House, W1, from Derwent London, paying close to £31m – a 6% yield – for the 25,000 sq ft office and retail asset. Shaftesbury has also bought the commercial elements of Newport Sandringham, W1, for £54.4m – a 2.6% yield – from Bourne Capital.
The deals come after Shaftesbury this week raised £156.6m by selling 25.3m shares – equal to circa 10% of the current issued share capital of the firm.
After the purchase of Newport Sandringham, Shaftesbury is expected to have about £185m for further investment in schemes within its existing core “villages” portfolio, which includes Carnaby Street, Chinatown, Berwick Street and Seven Dials/Covent Garden.
Chief executive Brian Bickell said: “Securing additional equity will support the continuing expansion of and investment in our unique portfolio located in the heart of London’s West End.”
Jaeger House at 57 Broadwick Street has been home to Jaeger since completion of the property in 1970. The office and retail leases expire in June 2015.
Retail rents in Soho are forecast to soar by 41% to £600 zone A by 2018, according to Colliers International (1 March, p68).
JLL is advising Derwent.
joanna.bourke@estatesgazette.com
