PruPIM exchanges contracts for sale of Jubilee and West End Houses
19 Jun, 2006, London
Prudential Property Investment Managers (PruPIM) acting on behalf of its client fund, The Prudential Assurance Company Ltd, has exchanged contracts for the sale of Jubilee and West End Houses, 197-213 Oxford Street & 11 Hills Place, London W1.
The Cosgrave Property Group has purchased the predominantly retail central London freehold properties for £132.5m, reflecting a net yield of 4.1% and an equivalent yield estimated at 4.6%.
The property is thought to be one of the highest profile and highest value investments on Oxford Street to be sold for some time. It was selectively marketed by Cushman & Wakefield on behalf of PruPIM during April, with offers sought in excess of £125m.
Paul McGrath of Cosgrave Property Group commented: "We are delighted to have acquired a key investment block on one of the best shopping streets in the world."
Bob Mogford, Director: Investment, PruPIM commented: "The sale follows a review of strategy in relation to our Fund's central London retail exposure, this property has performed well for our policyholders and we are very pleased with the price achieved. We are also delighted to have sold to Cosgrave Property Group with whom we have reached agreement to continue to manage the property."
The property lies immediately east of Oxford Circus and comprises a virtual island site of 0.73 acres (0.295 hectares).
Jubilee House comprises two major flagship retail stores (let to Next and Superdrug with parts sublet to Borders and Leslie Davis) with 122 ft of unbroken frontage to Oxford Street and extensive self contained office accommodation arranged on the fourth and fifth floors over. West End House is a highly specified and self contained office building arranged over five floors which enjoys separate access off Hills Place.
The total income generated from the property which is fully let to four tenants is just over £5.75m pa. The majority of this is let on leases with over 10 years unexpired, although the leases of just over 20,000 sq ft Jubilee House offices expire next year potentially presenting an early asset enhancement opportunity for the new owners.
After strong interest and receipt of a number of competitive proposals Cosgrave were selected as preferred purchaser and exchanged contracts within two weeks.
The Cosgrave Property Group was represented by Fergus Keane of CB Richard Ellis and Mayer Brown Rowe and Maw solicitors. Lovells acted as solicitors on behalf of Prudential.
The purchase is Cosgrave's second recent significant acquisition in the UK following its recent £80m acquisition of Caxtongate in Birmingham from Land Securities.
The Cosgrave Property Group is the major Irish investors and developers who, since being established over 25 years ago, have become one of the leading players in the Dublin residential and commercial property market.