Jaguar pounces on prime office space in London

Irish private wealth manager Jaguar Capital has purchased the London headquarters of legal firm SJ Berwin at 10 Queen Street Place from a Norwich Union fund. The financial details were not disclosed but CB Richard Ellis said the original guide price was £180 mln (EUR 236 mln). A report in Ireland's Sunday Business Post suggested that the sum paid was around EUR 225 mln. Jaguar were represented by the Dublin office of CB Richard Ellis.

Located in the heart of the City overlooking the Thames at Southwark Bridge, the property comprises some 21,460 m² of modern office space over basement, ground and four upper floors. SJ Berwin will continue to occupy all the office space under a single lease without a break clause which runs until December 2025. The building also accommodates a separately let, high-end car showroom and a restaurant.

According to the company announcement, prime city rents are currently in excess of £ 60 per sq ft and one of the major attractions of the investment is its low level of passing rent which allows significant scope for future rental growth. The rent is being topped up by the vendor to £ 43.50 per sq ft which is the guaranteed minimum rental level at the next rent review in December 2010.

Dermot Maguire, head of property investment at Jaguar, commented: 'The credit crunch has accelerated a cyclical turn in the Central London property market, and as a result good opportunities are available provided investments are carefully selected. For a combination of reasons a positive yield gap has re-emerged which has not been seen for some time. Consequently, Jaguar see opportunities in London for investment acquisitions in prime locations, with long unexpired leases to excellent covenants.'