It has been stated that Blackstone is set to buy one of Britain’s largest office parks for almost £500m in its biggest UK investment for nearly 2 years.
Chiswick Park consists of 1.1m sq ft of office campus in west London. The £480m offer by the US private equity group includes the assumption of the debt that backs the property.
Blackstone has beaten a number of bidders to the deal, including other opportunity funds such as London & Stamford and Moorfield. William Hill, Schroders’ head of property, confirmed that the trust had entered into exclusivity with a party.
The approach is seen to reflect Blackstone’s wider conviction in quality commercial property in London. The private equity group’s previous large deal in the UK was the acquisition of half the Broadgate office campus in the City of London during the summer of 2009.
The office park, designed by Rogers Stirk Harbour + Partners, comprises nine office buildings let to companies such as QVC, the broadcaster, and Tullow Oil. In addition, there are sites for two more office developments. In total, the deal is expected to reflect a yield of about 7.4 per cent.
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