A private investor based in Bermuda has contracted to acquire the long leasehold interests in 5 Churchill Place on the Canary Wharf Estate in London for £208 mln (about EUR 230 mln).
A private investor based in Bermuda has contracted to acquire the long leasehold interests in 5 Churchill Place on the Canary Wharf Estate in London for £208 mln (about EUR 230 mln).
Canary Wharf Group announced the sale on Wednesday, saying it reflected the continued interest in assets on the estate for high quality and highly specified properties let to strong tenants. The disposal by the Canary Wharf Group of 5 Churchill Place follows the recent sale by Credit Suisse of its 20 Columbus Courtyard building and HSBC's sale-and-leaseback of its building at 8 Canada Square on the estate.
'The disposal is consistent with the objectives of Canary Wharf Group which include active management of its real estate portfolio and the realisation of value through sales and or refinancing of certain buildings whilst controlling key aspects of the Canary Wharf Estate,' the group said.
The recently completed building at 5 Churchill Pace was designed by HOK International. It comprises 29,171m2 of office accommodation arranged over twelve office floors. The majority of the building - 10 floors of approximately 24,430 m2 - is let to J.P.Morgan Markets Limited for a term of 20 years from 11 August 2009 at an annual rent of £10.61 mln.
Canary Wharf Group, which is majority-owned by AIM-listed Songbird Estates, is providing rent support for the two currently unlet floors (4,831m2) of £2.16 mln per annum for a maximum period of 5 years.
