Germany's IVG Immobilien has disposed of a prime mixed-use scheme on London's Regent Street for £50 mln (EUR 60 mln) less than 18 months after having acquired it for £40 mln.
Germany's IVG Immobilien has disposed of a prime mixed-use scheme on London's Regent Street for £50 mln (EUR 60 mln) less than 18 months after having acquired it for £40 mln.
The buyer is The Regent Street Partnership, a joint venture between The Crown Estate and Norges Bank Investment Management, Norway's giant oil-fuelled pension fund.
The deal reflects a double-digit yield on equity, IVG said on Thursday.
Jaeger House, located at 200-206 Regent Street, comprises 2,700 m² of retail space as well as 1,800 m² of offices. Main tenant is fashion retailer Jaeger.
'The quick sale was primarily based on the very good working relationship between IVG and The Crown Estate and in particular, their strategic approach towards Regent Street to realign and secure this area as one of the first class destinations of retail and office space,' said Ali Abbas, head of UK Transactions at IVG.
The Norwegians already have a significant present in Regent St. In November 2010, the Norwegian pension fund made its first foray into the real estate sector by acquiring a chunk of the flagship retail destination for £448 mln (EUR 511 mln).
NBIM, which manages the EUR 340 bn Norwegian Government Pension Fund Global, agreed to buy a 150-year lease on a 25% stake in the street from The Crown Estate, which manages all the properties owned by the British sovereign.
Since 2002 The Crown Estate has been implementing a £1 bn regeneration programme in Regent Street to transform the street into an international destination for business and retail. Current retailers include Apple, Banana Republic and Jaeger. Regent Street offices are home to leading businesses such as Lloyds TSB and Matrix Group.
