CarVal, Orion, Quadrant move for 100 Cheapside

By Paul Norman - Monday, February 06, 2012 15:15

Fund manager Orion Capital Managers and Cargill real estate subsidiary CarVal Investors alongside developer Quadrant Estates are in talks to buy 100 Cheapside, a key City development sites, CoStar News understands.

Market sources this week said the partners are in talks to buy 100 Cheapside, EC2V – which is understood to be favoured by Apple for its first store in the City - from the City of London Corporation for close to the £25m asking price.

Quadrant would act as developer with funding provided by Orion and CarVal.

The City of London, advised by BNP Paribas Real Estate, has been seeking a joint venture partner to bring forward development of the site, which it sees as key to the regeneration of the City of London’s high street.

The site has planning consent for 87,000 sq ft of offices with 13,000 sq ft of shops.

Both Canary Wharf and Hines had been in talks to buy the site for just less than £25m.

However, rights-of-light issues at the site are understood to have seen those talks falter.

However, in September of last year, the City of London Corporation used its powers to protect 100 Cheapside from rights of light injunctions.

At a meeting of its Planning and Transport Committee, the Corporation said it would be prepared to override rights of light laws which allow neighbours to stop developments that block light into their properties.

The City of London bought 100 Cheapside in 2010 from Ireland’s NAMA and combined it with some of its own holdings before bringing it to market.

CarVal Investors was founded in 1987 by venture capitalist Cargill as an arm of its proprietary trading operation. In 2006 it became an independent subsidiary of Cargill. According to its website it has over $9bn in assets under management in both credit and real estate strategies.

pnorman@costar.co.uk

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