Resolution acquires Oxford Street assets

UK-based property investor Resolution has acquired an office and retail scheme on Oxford Street in London from The Crown Estate, the property portfolio associated with the monarchy in the UK.

The transaction involves the West End's Quadrangle, Beaver Building/Hat Factory and Paramount House blocks. The asset totals some 12,000 m² of space on the corner of Oxford Street and Wardour Street. The transaction volume was not disclosed.

The Quadrangle block and the Beaver Building/Hat Factory comprise a total 11 retail units and about 7,000 m² of office accommodation. Paramount House to the south totals 2,000 m2, including two retail units.

Paul Clark, director of investment and asset management at The Crown Estate said: 'This sale is part of our strategy to dispose of non-core assets, in order to concentrate on our core London holdings - including Regent Street - and diversification outside of central London.'

Robert Wolstenholme at Resolution said: 'This is the latest purchase for Resolution Real Estate Fund III, launched at the start of this year, and underlines our strategy to make selective acquisitions in Central London. The Quadrangle block offers a number of asset management opportunities and extends our involvement in the Soho market, complementing our residential development at nearby Marshall Street.'

CBRE and Burges Salmon acted for The Crown Estate and Jones Lang LaSalle and Berwin Leighton Paisner acted for Resolution. Eurohypo AG, London Branch provided debt finance.

The Crown Estate is valued at over £7bn and includes both substantial blocks of urban property and 120,000 hectares of agricultural land in England, Scotland and Wales, plus half the foreshore, together with the seabed out to the 12 mile territorial limit. All of The Crown Estate's revenue surplus is paid directly to the Exchequer. This amounted to £200mln in 2006/2007.

Resolution was founded in 1998 to invest in UK and European commercial real estate that offers scope for high returns.