Global private equity firm The Carlyle Group has made its first major deal in the UK for two years by acquiring six Central London properties for £671 mln (EUR 803 mln). The assets acquired form a large part of the White Tower 2006 CMBS portfolio.
Global private equity firm The Carlyle Group has made its first major deal in the UK for two years by acquiring six Central London properties for £671 mln (EUR 803 mln). The assets acquired form a large part of the White Tower 2006 CMBS portfolio.
The six properties acquired comprise the Thames Portfolio and Alban Gate. The assets provide a total of 149,000 m2 and currently generate over £62 mln of rent per annum.
The acquisition was made on behalf of Carlyle's third pan-European real estate fund, Carlyle European Real Estate Partners III, which was launched in June 2008 with EUR 2.2 bn of equity.
Financing for the Thames Portfolio was provided by a consortium of banks led by Société Générale as structuring bank. Société Générale, BNP
Paribas, Crédit Agricole and ING acted as arrangers, and ING as facility agents.
AXA REIM participated in the financing of the Thames Portfolio. In the case of Alban Gate, Société Générale acted as arranger and sole bookrunner.
Robert Hodges, managing director Carlyle European Real Estate, said: 'This acquisition has provided us with a rare opportunity to acquire six landmark assets in strong locations, let to a number of global high-quality occupiers. Whilst each property benefits from an existing secure income profile, there are considerable longer term opportunities across the portfolio for active asset management and redevelopment, where we believe we can add significant value.
'This acquisition is a further example of our strategy in Europe of making long-term investments in landmark assets in strategically important European centres. We are especially pleased to secure long term, flexible financing from a syndicate of strong relationship banks led by Société Générale, for such a large portfolio, especially given current debt market conditions. The profile of these assets sits well with our pan-European portfolio in CEREP III and we look forward to creating value through the many opportunities which lie within these assets.'
Carlyle was advised by GVA Grimley, Herbert Smith and PricewaterhouseCoopers.