Property Investment: Private equity firm sells £157m prime London office

Friday, March 26, 2010

Private equity group makes quick profit on property investment in City of London

By Ashley Brunskill

Private equity group Evans Randall is selling a major London property investment only nine months after buying it.

It is to sell Milton Gate to German open-ended fund manger Deka for £157 million after buying the property for £127 million, Property Week reports.

Evans Randall's yield on the sale of the 200,000 sq ft business space leasing opportunity is 7.46 per cent.

The initial deal involved the private equity firm buying on behalf of a Middle Eastern consortium and almost £80 million of debt funding such as Santander and DG Bank.

As a result of the sale, Milton Gate is now one of the most traded properties in the City of London.

In addition to increased activity for asset management firms, London office real estate has been much in demand during recent months with movement expected to happen over the 300,000 sq ft Drapers Gardens and the Docklands Harbour Exchange Square.

Source: ask-re The Property People LLP