GR completes £134.5m City buy

By James Buckley - Tuesday, January 09, 2018 10:10

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Wei Chunxian’s GR Properties, a Hong Kong property investor, has completed its deal to buy the long leasehold interest in Juxon House at 100 St Pauls Churchyard, EC4, from Standard Life for £134.5m.

The price reflects a net initial yield of 4.1%, and the deal, which completed yesterday, is part of GR’s drive to increase its overseas commercial property investments, with a particular focus on the UK and US, as well as its domestic market. The deal was first revealed by CoStar News in November.

The group completed the deal in cash but will refinance later with bank debt or potentially a rights issue.

Juxon House, which sits on the northern-western side of St Pauls Cathedral, was developd by Standard Life in 2003. It is a grade A office building with a net lettable area of 123,781 sq ft across six floors.

The building is fully let to four office tenants and four retail tenants. The rental income generated for the twelve months ended 31 December 2015 and 2016 was £5.33m and £5.52m respectively

Juxon House, which has been bought through GR’s British Virgin Islands SPV, Talented Chief Limited, was last valued by BMI Appraisals this September at £136.5m.

The leasehold interest runs for a term of 234 years, three months and seven days from 16 March 2001 and ending on 23 June 2235.

GR Properties made its first property purchase in London in 2016, with the £27.8m acquisition of Boundary House on Jewry Street, EC3, from Picton.

JLL acted for GR Properties; BNP Paribas Real Estate advised Standard Life.

jbuckley@costar.co.uk

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