Thor/AEW hammer out £180m New Oxford St buy

By Paul Norman - Monday, August 07, 2017 8:47

Thor Equities and AEW have bought 100 New Oxford Street, a prime mixed-use building in London’s West End for £180m, from Tishman Speyer in a deal first revealed by CoStar News.

AEW’s stake in the property is being purchased through a club deal consisting of two German investors.

CoStar News first revealed the deal in June.

100 New Oxford Street is located 100 metres from Tottenham Court Road station, which is undergoing a major refurbishment as part of London’s Crossrail development and will provide access to the Elizabeth line which is scheduled to open in 2018.

Rob Wilkinson, European CEO at AEW said: "100 New Oxford Street is an exceptional property in an area that is benefitting from major investment and improvement, including the most significant infrastructure project in Central London for over a century. As such the property represents a compelling opportunity and a great introduction to the London market for our German clients who we are very pleased to bring to the UK capital. The asset is further augmented by the numerous residential and commercial development projects in the vicinity of the asset which are enhancing the area’s potential, boosting business and improving public spaces.”

The extensively refurbished asset comprises a total of 106,404 sq ft, with 18,507 on the ground floor across six prime retail units and two restaurants, with over 260 ft of frontage. The remaining 87,897 sq ft consists of Grade A office space over six upper floors. The property is fully occupied by 16 tenants, providing a diverse occupier base, including Shake Shack, Jessops, Costa Coffee and All Bar One on the ground floor, as well as Shisheido, WME Entertainment and Stanhope PLC on the upper floors.

Joseph Sitt, CEO of Thor Equities, said: “100 New Oxford Street is a prime asset located in one of the most desirable districts in London for office and retail properties, and with the opening of the nearby Crossrail Tottenham Court Road station, demand for space in the area will only continue to grow. Thor remains strongly committed to London as a key global market, and we have proven to be able to continue to extract value from assets in the City and other key markets throughout Europe.”

Tishman Speyer acquired the building from Hermes Real Estate and Canada Pension Plan Investment Board in 2015. Having purchased the property at 47% vacancy, the property became fully leased with new retail and office tenants in six months.

Dan Nicholson, Managing Director and Head of UK for Tishman Speyer, said: “This is another example of how Tishman Speyer can add value to a property through active asset management, and through attracting world-class tenants. This sale marks another chapter of Tishman Speyer’s successful history in the London office market, which began over 20 years ago.”

Tishman financed the acquisition with a two-tranche £90.4m six-year loan from BNP Paribas Corporate and Institutional Banking.

The building was bought following the completion of refurbishment of three floors.

BNP Paribas’ loan comprised a £85.4m senior loan, reflecting a 65.7% LTV, and an additional £5m to cover costs while the property’s vacancy was leased up. The facility has a maximum term of six years.

Tishman Speyer acquired the property on behalf of its new European Value-Added Fund, TSEV VII.

Tydus Real estate acting for AEW and Thor.

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