Soho Estates, the property empire of the late Paul Raymond, has replaced Princeton Investments as the frontrunner to buy part of bookshop Foyles’ portfolio.
The West End landlord is understood to be close to agreeing the purchase of 125,000 sq ft of Soho buildings from the family owners of Foyles, Noved Investment Holdings.
As revealed by Estates Gazette, the portfolio was put on the market in December for £62.5m, reflecting a 3.7% yield. It comprises Foyles’ flagship store at 111-117 Charing Cross Road, WC2, and mixed-use buildings at 10-14 Greek Street and on Manette Road, both W1.
Soho Estates, along with Realty Estates and Great Portland Estates, had bid for the assets, but the Lee family’s Princeton Investments was selected as preferred bidder after pledging to pay more than £7m over the asking price.
However, the transaction has been hit by problems, and Soho Estates is now poised to buy the properties. The deal is not expected to be completed until April.
Foyles will remain in occupation at its flagship store until 2013, when it will move to 107-109 Charing Cross Road, which it bought in March 2011 for less than £30m.
DE&J Levy and H2SO are advising Noved. All parties declined to comment.
joanna.bourke@estatesgazette.com
