MGPA acquires Harbour Exchange in London for EUR 160m

MGPA, the private equity real estate investment advisory company, has exchanged contracts for the acquisition of Exchange Tower, Harbour Exchange, in London's Docklands for £134.6 mln (EUR 160 mln) from UK REIT Hammerson.

The acquisition is on behalf of MGPA Europe Fund III, part of the larger MGPA Global Fund III which closed in June 2008 with commitments of $5.2 bn to invest across Europe and Asia.

Europe Fund III raised EUR 841.5 mln and has already made investments in the UK, France, Italy, Greece and Poland.

Harbour Exchange is a nine acre landmark freehold estate built in 1989 incorporating a 482,950 square feet (45,000 m2) office tower , 565 car spaces and the leasehold interest of the adjacent Harbour Island.

The net yield is 8.1% off a contracted rent of £11.1 mln and the weighted average lease expiry is 4 years.

The property is let to 30 principal tenants at an average passing rent of £24 per square foot with 49% secured by the UK government and Barclays.

MGPA's head of UK acquisitions, Hamish MacDonald said: 'The UK is a key market for the fund. Exchange Tower is the fund’s second investment in the UK after Lands Improvement Holdings plc, the once-listed land development company that was acquired in December 2009. We are positive about rental growth prospects for the Central London office market due to the lack of supply available from the previous cycle and the constrained immediate development pipeline.'

Click on the link below to read: Hammerson carries out 4th investment deal in June