Private equity fund manager Clearbell Capital has joined forces with Morgan Stanley Alternative Investment Partners Real Estate to acquire the corporate entity holding 3-5 Harbour Exchange in London from UK REIT Land Securities.
Private equity fund manager Clearbell Capital has joined forces with Morgan Stanley Alternative Investment Partners Real Estate to acquire the corporate entity holding 3-5 Harbour Exchange in London from UK REIT Land Securities.
The price was put at £37 mln (€44 mln).
Situated within the Harbour Exchange estate, the buildings consist of three self-contained multi-let modern offices totalling 190,000 sq ft (17,650 m2). The asset is circa 80% let with well-known tenants, including British American Tobacco and HSBC.
With the majority of tenants having lease events during the next three years, Clearbell said it will have an opportunity to reposition the buildings, which will also benefit from the impending arrival of Crossrail in 2017, and the continued regeneration of the Docklands.
'We are delighted to acquire this asset off a sensible base price with scope to drive future value via refurbishment and leasing,' said Clearbell's partner Rob West. The company has deployed nearly £200 mln in three investments over the last few months. 'Given market conditions we expect our rate of capital deployment to accelerate throughout 2014,' he added.
Clearbell Property Partners II Fund was launched in 2013 by the team behind Mountgrange. Last year saw investments with Pluto Finance for a platform providing finance for housing developments in London and the southeast of England, and the acquisition of six office buildings from Greenhill’s for £60 mln.
Gryphon Property Partners advised Clearbell and Morgan Stanley AIP and GM Real Estate advised Land Securities on the 3, 4 and 5 Harbour Exchange transaction.