In yet another indication that foreign interest is returning to the UK real estate markets, a private investor from Bermuda has bought the Churchill Place office building located in the Canary Wharf area. The deal was finalised recently, becoming the second successful deal in recent times after the HSBC headquarters sale to South Korea’s National Pension Fund. The building was earlier to be sold to an American investment bank that later went bankrupt.
The buyer had to pay around 208 million pounds to acquire the 12 floor office complex in the prime Canary Wharf area. The investor is a private investment partnership based in Bermuda, and they have made a deal with Canary Wharfto make good the rent of the vacant floors for a period of five years. Ten floors of this building are occupied by JP Morgan Markets who pay a rent of 41 pounds per square foot.
Canary Wharf will be required to pay around 2 million pounds per year to make good the rent for the two vacant floors. In this deal, Canary Wharf has made a 6% profit.
The make good provision is being seen as a risky proposition by market analysts who are doubtful if the slow markets will justify this kind of expense. However, the building is considered prime Grade A office space and this will stand in its favour as markets begin to show signs of recovery for those looking at London rent a desk space.
Analysts have confirmed that the sale price of the property matches market rates now. They believe that this deal has confirmed the high worth of property here even in recessive markets.
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This entry was posted
on Saturday, December 26th, 2009 at 1:05 pm and is filed under Living With Real Estate, Market, Public Relations.
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