News

Tchenguiz brings relief to Widows

News

Adam Coffer and, Robert Gibson

25 October 2003

Qatar pays £160m for ING Barings’ London head office after a year on the market for the block

The State of Qatar has teamed up with Vincent Tchenguiz to buy the London head office of investment Bank ING Barings.

An investment vehicle for the Middle Eastern country has paid £160m for 60 London Wall, EC2, in a deal brokered by Tchenguiz’s new venture, Consensus. Tchenguiz, who built up debt-driven investment giant Rotch with his brother Robert, set up Consensus earlier this year.

It focuses on non-core property deals such as defence and energy but also includes a banking, financial and securitisation arm.

Scottish Widows had been trying to sell the block for over a year, originally marketing it at £180m. This week’s deal represents a yield of 7%. Tchenguiz set up Consensus in response to banks’ decreasing appetite to fund the straight finance deals large offices let on long leases to good covenants that Rotch carried out.

The 235,000 sq ft (21,800m2) 60 London Wall was let to Barings on a 22-year lease in 1994. It had been under offer to German Fund CGI, but a deal collapsed earlier this year.

A source said: “The Arab appetite for big London buildings shows no signs of abating.” He added: “Consensus effectively brokered the deal, signalling its future intent. Tchenguiz will not get 99% lending for straight investments so he is being innovative.”

The deal comes as another high-profile City investment is poised to change hands.

REIT Asset Management, believed to be backed by US lender GMAC, is the frontrunner to buy St Katharine Docks, E1, for £285m-£295m.

REIT, owned by Leo Noe and run by Kevin McGrath, has been selected as preferred bidder for Taylor Woodrow’s office, residential, retail, leisure and marina complex. Taywood has brought down the price for the complex since it first tried to sell it, more than two years ago.

ING, acting for Starwood, is understood to be in reserve position. Other interested bidders included Rugby, Miller, Heron/AXA and Pillar.

The current deal includes the Richard Rogers-designed, 147,000 sq ft (13,700m2) K2 redevelopment, which is worth £120m, and was prelet at £42 per sq ft in July 2002 to Marsh, a subsidiary of insurance giant Marsh & McLennan. Jones Lang LaSalle is advising Taylor Woodrow.

Tishman Speyer Properties, advised by DB Real Estate Advisory, this week completed its £215m sale of Tower Place, EC3, a yield of 5.6%. DGI, part of DB Real Estate, has bought the 450,000 sq ft (41,805m2) building, which is the European headquarters of Marsh & McLennan.

Qatar pays £160m for ING Barings’ London head office after a year on the market for the block The State of Qatar has teamed up with Vincent Tchenguiz to buy the London head office of investment Bank ING Barings. An investment vehicle for the Middle Eastern country has paid £160m for 60 London Wall, EC2, in a deal brokered by Tchenguiz’s new venture, Consensus. Tchenguiz, who built up debt-driven investment giant Rotch with his brother Robert, set up Consensus earlier this year. It focuses on non-core property deals such as defence and energy but also includes a banking, financial and securitisation arm. Scottish Widows had been trying to sell the block for over a year, originally marketing it at £180m. This week’s deal represents a yield of 7%. Tchenguiz set up Consensus in response to banks’ decreasing appetite to fund the straight finance deals large offices let on long leases to good covenants that Rotch carried out. The 235,000 sq ft (21,800m2) 60 London Wall was let to Barings on a 22-year lease in 1994. It had been under offer to German Fund CGI, but a deal collapsed earlier this year. A source said: “The Arab appetite for big London buildings shows no signs of abating.” He added: “Consensus effectively brokered the deal, signalling its future intent. Tchenguiz will not get 99% lending for straight investments so he is being innovative.” The deal comes as another high-profile City investment is poised to change hands. REIT Asset Management, believed to be backed by US lender GMAC, is the frontrunner to buy St Katharine Docks, E1, for £285m-£295m. REIT, owned by Leo Noe and run by Kevin McGrath, has been selected as preferred bidder for Taylor Woodrow’s office, residential, retail, leisure and marina complex. Taywood has brought down the price for the complex since it first tried to sell it, more than two years ago. ING, acting for Starwood, is understood to be in reserve position. Other interested bidders included Rugby, Miller, Heron/AXA and Pillar. The current deal includes the Richard Rogers-designed, 147,000 sq ft (13,700m2) K2 redevelopment, which is worth £120m, and was prelet at £42 per sq ft in July 2002 to Marsh, a subsidiary of insurance giant Marsh & McLennan. Jones Lang LaSalle is advising Taylor Woodrow. Tishman Speyer Properties, advised by DB Real Estate Advisory, this week completed its £215m sale of Tower Place, EC3, a yield of 5.6%. DGI, part of DB Real Estate, has bought the 450,000 sq ft (41,805m2) building, which is the European headquarters of Marsh & McLennan.