£265m Woolgate sale exchanges

By James Buckley - Thursday, December 13, 2012 12:03

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A TPG-led consortium with Ivanhoe Cambridge has exchanged contracts to buy Woolgate Exchange in the City, EC2, for £265m.

The purchase price for the deal, which is expected to complete on 16 January, reflects an initial yield of 5.97% and a capital value per sq ft of £754.

Earlier this month it emerged that Ivanhoé Cambridge, the real estate subsidiary of Canadian institutional fund manager Caisse de dépôt et placement du Québec, had financed the £265m acquisition of Woolgate Exchange with a circa £160m five-year senior loan from MetLife, CoStar News can reveal.

Ivanhoé Cambridge’s purchase – including £105m in equity is managed in a separate account by global private equity firm TPG – will virtually repay the entire £265.25m whole loan secured against the 340,000 sq ft trophy asset, at 25 Basinghall Street, when the deal closes next month.

D2 Private, the Irish investor, bought the City of London office block from Hamburg-based investment bank Bankhaus Woelbern in early 2006 for £325m.

But D2 Private was unable to repay the then outstanding whole loan balance of £272m by its July 2011 maturity, prompting special servicer Capita Asset Services to enlist Knight Frank and Jones Lang LaSalle in October 2011 to bring the property to market with a £290m guide price.


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