City Developments Limited CDL has completed the purchase of a freehold Grade A office tower, 125 Old Broad Street, for £385 million or £1,170 psf.
125 Old Broad Street comprises a Grade A office tower and ancillary retail space and has Net Lettable Area (NLA) of approximately 329,200 square feet (sq ft) spread over 26 floors with panoramic views of the city and three basement levels. It also has secured parking facilities.
The property provides a diversified and significant income stream with strong rental growth potential. It is fully leased to internationally renowned tenants, including Cushman & Wakefield’s European HQ, King & Spalding and China International Capital Corporation, with a passing yield of approximately 4.7%. At present, the top five tenants account for over 60% of the total NLA and income. With average passing rents currently about 25% below prime average rents in the City of London, there is strong potential for positive rental reversions. In addition, the property’s overall Weighted Average Unexpired Lease Term (WAULT) of 5 years (to lease breaks) and 5.4 years (to lease expiries) is attractive.
Mr Frank Khoo, CDL Group Chief Investment Officer, commented: “In line with our strategy to grow our recurring income significantly over the next 10 years, this is our second London commercial property acquisition in 2018. We have confidence in the long-term fundamentals of London as a global financial hub with a robust office market. The short-term uncertainties surrounding Brexit have presented us opportunities to acquire assets with deep value. Capitalising on attractive pricing and yields, we have continued to expand our London commercial portfolio through strategic off-market acquisitions of high performance assets. The tightening of London’s existing office stock and limited new supply will also drive rental growth into 2021. Given its excellent location in a diverse business district, 125 Old Broad Street will continue to attract a strong tenant mix from the finance, legal, insurance and technology/media/telecommunications sectors.”
27/10/2018 18:23 by Buildington
Blackstone has acquired 125 Old Broad Street office building for £320 million from Brookfield Property Partners.
The 330,000 sq ft commercial building is being acquired as part of Blackstone’s Core Plus Strategy. 125 Old Broad Street is positioned in the heart of the City of London. Its major tenants are DTZ, King & Spalding, Gide Loyrette Nouel, Landmark and Renaissance Re.
Brookfield acquired its initial 50% equity share of 125 Old Broad Street as part of the acquisition of office assets from Hammerson plc in June 2012. In October 2013, Brookfield took full ownership of the development after acquiring the remaining 50% stake from GE Real Estate – Kennedy Wilson joint venture.
Ken Caplan, Head of European Real Estate at Blackstone, said: "This is our second investment in London this year within our Core Plus Strategy following our acquisition of Alban Gate. We continue to believe strongly in London across our real estate platform. We want to thank Brookfield for the opportunity to acquire such a high quality asset."
Martin Jepson, President and Chief Operating Officer of Brookfield Property Partners' European Office Division said: "This transaction is a great deal for both Brookfield and Blackstone. 125 Old Broad Street is a top quality asset with long lease tenants and a full and fair price has been agreed. The proceeds of this sale will be reinvested into our significant City development programme now well underway."
29/07/2014 13:34 by Buildington
Hammerson has received the second and final payment of £189 million from Brookfield Office Properties in respect of the transfer of its interests in 125 Old Broad Street and Leadenhall Court. Hammerson exchanged contracts for the sale of the majority of its office portfolio to Brookfield Office Properties (99 Bishopsgate, EC2; the 50% stake in 125 Old Broad Street, EC2; Leadenhall Court, EC3; and the development site Principal Place commercial and residential, EC2) last year for £518million, with the first payment of £329 million having been received in September 2012.
Source: Hammerson www.hammerson.com
01/07/2013 19:56 by Buildington
Brookfield Office Properties Inc. has agreed to acquire a portfolio of premier office buildings and a development site in the London financial district from Hammerson plc for $829 million (£518 million).
The portfolio includes 125 Old Broad Street - this 328,000-square-foot class A 26-story office tower at the site of the former London Stock Exchange was completely redeveloped in 2008. The building is 98% leased to various tenants. Brookfield will own a 50% stake in this building along with the two existing joint venture partners.
The expected closing date of 99 Bishopsgate, Principal Place and the smaller assets is September 30, 2012; 125 Old Broad Street and Leadenhall Court are expected to close in June 2013.
Source: marketwire.com 19.06.2012
25/06/2012 16:14 by Buildington