Hines carves out £114m Stonecutter sale

By James Buckley - Tuesday, November 18, 2014 15:20

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A UK-Canada joint venture has swooped to buy Stonecutter Court, part of Deloitte’s Midtown campus, for £114m, CoStar News can reveal.

Montreal headquartered Ivanhoé Cambridge, a subsidiary of the Caisse de dépôt et placement du Québec pension fund, is close to buying the building at 1 Stonecutter Street, EC4, in a joint venture with UK niche property company Greycoat.

The deal, which is expected to close early December, has been agreed at a net initial yield of 5.5%.

Ivanhoé Cambridge has been looking to redeploy the capital it raised in the summer following its £320m sale with TPG Capital of Woolgate Exchange to Cathay Life.

Hines, on behalf of its Hines Global REIT, appointed DTZ to sell the building, part of Deloitte's New Street Square campus, EC4A, in September, as revealed by CoStar News.

The 153,000 sq ft building at Stonecutter Street comprises 150,000 sq ft of offices principally leased to Deloitte.

Hines, which declined to comment on the deal, recently leased 10,000 sq ft to serviced office provider Ventia at 81 Farringdon Street, a self-contained building within the Stonecutter Court development, taking it to full occupation. There is a current rent passing of £43.30 per sq ft.

Hines Global REIT was launched in August 2009 and has a portfolio of investments in 24 locations in the US, the UK, France, Germany, Poland, Russia and Australia.

Hines Global REIT last year bought One Westferry Circus and 25 Cabot Square in central London. Hines's European Development Fund II then sold 280 High Holborn, its Midtown office development, for £86m – almost 10% over the asking price - to a private client of Citi Private Bank.

The Global REIT opted to sell Stonecutter Court, following off market interest in the asset, to rebalance its exposure to central London offices.

Hines bought the building in 2011 via the acquisition of the share capital of Sofina Properties for £93.2m.


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