The Kuwaiti government has bought 5 Canada Square at Canary Wharf in London for close to £385 mln (€448 mln), according to well-informed market sources.
The Kuwaiti government has bought 5 Canada Square at Canary Wharf in London for close to £385 mln (€448 mln), according to well-informed market sources.
The deal, which was first reported by magazine CoStar News, reflects a yield of 5%.
The Kuwaitis, acting through their real estate arm St Martins Property, have bought the asset from private equity group Evans Randall, which purcased the building in July 2007 from Royal Bank of Scotland for £452 mln.
The transaction was funded with a £354 mln loan from Halifax Bank of Scotland, which was restructured in 2010 with a consortium of banks along with a £40 mln senior B debt facility from Partners Group.
The debt restructuring, combined with new equity from Evans Randall and its underlying investors, is understood to have re-priced Evans Randall's entry point to £360 mln.
The 14-storey building is located in the heart of London's Canary Wharf, adjacent to the London Underground, Dockland Light Railway and future Crossrail stations. It is let to Credit Suisse International on a 25-year lease ending in October 2027. Ten floors are sub-let to Bank of America on a 15-year-plus lease.
Evans Randall declined to comment.
