Friday 2 September 2011

Towering deal

The spread of the investment deals is right across London with the largest off market deal for some time close to completion with Credit Suisse selling the 17,187 sq.metres (185,000 sq.ft.) Richard Rogers designed Tower Bridge House, E1. The buyer is yet another foreign pension fund. It is the Employees Provident Fund of Malaysia which is thought to be paying £140 million for a yield of 5.2%.

This underlines the enthusiasm by foreign investors for putting their money into safe havens, notably the UK, because of global economic problems and uncertainty about equity markets. That is always worth remembering when predictions of a collapse of commercial property markets are broadcast. In the City, Mitsubishi Estate has bought the 13,634 sq.metres (146,820 sq.ft.) 6-8 Bishopsgate which is occupied by Deutsche Bank. Mitsubishi’s Hiroyuki Arimura said: “This building is in a prime location in the core of the City and the strategically important eastern cluster of tall buildings.”

A number of buildings are still coming onto the market from Receivers, such as the 196 bedroom Crown Plaza Hotel in Shoreditch (now in the fast growing technology corridor of the East End) where Colliers International is seeking a buyer at £80 million. It is close to Liverpool Station. Also in Shoreditch, Knight Frank is marketing the 208 bedroom Hoxton Hotel for £70 million.


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