Henderson Park agrees £100m Midtown buy

By James Buckley - Thursday, October 19, 2017 17:50

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Henderson Park, the European real estate investment platform founded by Nick Weber, has agreed terms to buy Athene Place from Commerz Real for around £100m, CoStar News can reveal.

The deal was agreed following bids from Credit Suisse, on behalf of its value add fund; and Landsec; as well as interest from Seaforth Land and Israeli construction firm PBC.

German fund manager Commerz instructed Savills and GM Real Estate to sell the leasehold interest in the 137,541 sq ft building at 66-73 Shoe Lane, for £120m in June, reflecting a yield of 5.75%. However, there is an outstanding rent review from 25 March 2017 which is likely to push up the rent from £5.7m per annum currently to around £6.6m pa, which would therefore increase the yield. The vendor is topping up the rent in the meantime.

The building, which provides office and retail space over basement, ground and eight upper floors, is held long leasehold at a peppercorn rent with an unexpired term of 135 years. Commerz bought the building in June 2008 for £92.5m, reflecting a yield of 5.7% and a capital value of £672.53 per sq ft.

Deloitte occupies all of the office space on a lease that runs until March 2027, paying a rent of £38.64 per sq ft. The retail space is let to Caffè Nero and Balls Brothers.

All parties declined to comment.

jbuckley@costar.co.uk

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