Special servicer Hatfield Philips has announced that Mitsubishi Estate Company (MEC) paid £95 mln (EUR 107 mln) for Deutsche Bank's City of London headquarters. The transaction was initially announced last week but the investment volume was not disclosed at the time.
Special servicer Hatfield Philips has announced that Mitsubishi Estate Company (MEC) paid £95 mln (EUR 107 mln) for Deutsche Bank's City of London headquarters. The transaction was initially announced last week but the investment volume was not disclosed at the time.
Located in the City of London, the 20-storey tower comprises 13,645 m2 of high-quality office space, which is let in its entirety to Deutsche Bank on two leases expiring in 2015. The German bank has recently been consolidating more staff into the building.
Cushman & Wakefield advised MEC and Jones Lang LaSalle/King Sturge advised the vendor on the sale of 6-8 Bishopsgate in the City of London.
MEC is one of Japan's largest property development and investment companies and it may be considering a new development project centred around 6-8 Bishopsgate. MEC acquired the neighbouring property, 150 Leadenhall Street, for around EUR 39 mln in May.
Canadian Jesta Capital acquired 6-8 Bishopsgate, the former headquarters of Barings Bank, in 2006. Hatfield Philips was called in when the fund defaulted on debt repayments.
Hatfield Philips said it chose to keep the loan in primary servicing as it believed the matter could be resolved without recourse to the special servicer. John Muldoon, director of real estate, Hatfield Philips said: 'Whilst traditionally the loan would be transferred to special servicing, we felt that we would better serve the lenders, given the nature of this loan, to keep it in primary servicing and are confident that the Law of Property Act receiver and sales team appointed have delivered the best possible results.'
