Irish investment company D2 Private is reportedly buying a government-occupied block in London's West End for £180 mln (EUR 254 mln). In September Legal & General's Life and Linked Life funds put the 31,600 m[sup]2[/sup] block up for sale for £200 mln, but the ongoing credit crunch forced them to accept a 10% cut in the transaction price.
Irish investment company D2 Private is reportedly buying a government-occupied block in London's West End for £180 mln (EUR 254 mln). In September Legal & General's Life and Linked Life funds put the 31,600 m2 block up for sale for £200 mln, but the ongoing credit crunch forced them to accept a 10% cut in the transaction price.
The entire building is let to the UK Department for Business, Enterprise and Regulatory reform and the Department for Innovation, Universities and Skills for 25 years with upward-only rent reviews in 2011 and 2016. The property generates rental income of £9 mln per annum. At a price of £180 mln, the deal would reflect a yield of 4.75%. Jones Lang LaSalle acts for L&G while D2 is being advised by Knight Frank.
Dublin-based property investor D2 Private has been an active buyer in London's office market in recent years. The company is owned by Irish developer David Arnold and the managing director is Deirdre Foley, a former executive at Quinlan Private.