New York-based real estate investor Witkoff Group has re-entered the London market with the joint acquisition of the 90 Long Acre building for £175 mln (EUR 259 mln). London-based DCD Group partnered the Witkoff Group in the transaction which reflected a yield of 4.2%.
New York-based real estate investor Witkoff Group has re-entered the London market with the joint acquisition of the 90 Long Acre building for £175 mln (EUR 259 mln). London-based DCD Group partnered the Witkoff Group in the transaction which reflected a yield of 4.2%.
The two companies exchanged contracts for the 18,000 m2 Class A freehold office property with the JER Partners and GE Real Estate at the beginning of January. JER and Benchmark (taken over by GE) bought the building in 2000 and fully refurbished it. The tenants include Scottish Equitable, Eurohypo, GMAC and Regus. CBGA acted for the purchasers and Franc Warwick advised the vendors.
As the office complex covers less than 60% of the site at 90 Long Acre, DCD Group and Witkopp Group intend to seek planning permission to add 11,000 m2 of space to the property.
The Witkoff Group was last active in the British capital when its joint partnership with Lehmann Brothers acquired Shell Mex House in 1999. The building was subsequently sold to Rotch. Now Witkoff is seeking further European assets. 'We believe that Europe offers interesting active management opportunities and provides a complementary synergy with our US-based business,' said Scott Alper of the Witkoff Group.
