Terrace Hill, the AIM-listed property group, has confirmed that it is the successful bidder for House of Fraser’s headquarters in London’s Victoria, with an offer believed to be over £60m.
Yesterday the group exchanged contracts to purchase 1 Howick Place in a joint venture in which Terrace Hill has a 20% equity interest.
Icelandic retail investor Baugur, House of Fraser’s new parent company, will release the site for development after a short-term sale and leaseback period of around 18 months.
It was sold without planning permission after consent for an office scheme lapsed.
The jv plans to redevelop the site as a mixed-use office and residential scheme with an estimated completion value of around £180m.
Philip Leech, Terrace Hill’s Group managing director, said: “This is an exciting acquisition for Terrace Hill in the fast-growing Victoria office and residential market which should generate significant returns for the joint venture.”
References: EGi News 20/12/06
