Privately-owned investment bank Evans Randall is to forward fund Pace Investments' redevelopment of Riverbank House in the City of London financial district in an off-market deal. The transaction price of £300 mln (EUR 446 mln) reflects a net initial yield of 4.5%.
Privately-owned investment bank Evans Randall is to forward fund Pace Investments' redevelopment of Riverbank House in the City of London financial district in an off-market deal. The transaction price of £300 mln (EUR 446 mln) reflects a net initial yield of 4.5%.
Last October, London-based hedge fund Man Group signed a 25-year lease agreement, at rent of £484 per m2, with Pace Investments and the City of London for the 30,000 m2 development that is due for completion in 2009. The City of London owns the freehold, but Evans Randall now has a 155-year lease with a right to extend this for a further 50 years.
Michael Evans, chairman of Evans Randall, commented: 'This acquisition fits well with our strategy of acquiring exceptional assets let to strong tenants in Europe's main financial centres.' An avowed 'trophy hunter', Evans's bank has invested, often with partners, to acquire some EUR 4.5 bn worth of commercial property in the last two years. He expects to increase this volume to almost EUR 6 bn by the end of this year.
This month alone Evans Randall announced the Riverbank deal, the sale of the London headquarters of Dutch bank ABN Amro for EUR 340 mln and the EUR 305 mln refinancing deal with Credit Suisse of the Financial Services Authority headquarters in Canary Wharf.
The June issue of PropertyEU Magazine features a profile of Michael Evans. Click on the link below and go to page 46 to read the article in the online version of the magazine.