Columbus Capital Management has announced that it has completed a restructure – worth Â£26 million – of the head lease of Lombard House.
Located at 33 Gracechurch Street, the part freehold, part leasehold interest at Lombard House was purchased by Columbus UK Real Estate Fund and the British Airways Pension Fund.
The partners struck a deal worth Â£15.6 million at the end of 2011.
Columbus has restructured the head lease with the Fishmongers’ Company; the new deal sees any of the site’s freehold interests merged into the Fishmongers’ Company’s ownership.
The existing head lease, held by Columbus, has been surrendered and replaced with a new 150-year lease for the whole site – granted by the Fishmongers’ Company at a reduced rate.
Composed of 105,500 sq ft of London office space, 65 per cent of property is currently occupied, with tenants including Clydesdale Bank, TK Maxx and Aegis.
Managing partner of Columbus Management, Joe Froud, commented on the deal.
He said: “Despite its prime location, the building’s unfortunate tenure has always discouraged the capital investment required to deliver its full potential.
“Fishmongers’ were open to a commercial discussion to improve the asset and having completed the head lease restructure we are now progressing a comprehensive redesign of the building’s reception area and vacant floors which will form the final stage of its repositioning.”
News bought to you from DeVono Cresa, the award-winning commercial property advisers, specialising in Central London office, retail and leisure space.