16 Dec 2015 07:00
16th December 2015
U+I realises £4.0 million of gains from sale of Becket House in Waterloo
U and I Group PLC ("U+I"), in a 15:85 joint venture with Proprium Capital Partners ("Proprium"), today announces that it has exchanged contracts to sell Becket House, a central London commercial office building for £112 million at a 4.0 per cent yield. The building, which was acquired by the joint venture partners in June 2014 at a 5.1 per cent net initial yield, has been sold to its freeholder, Guy's and St Thomas' Charity. The disposal will generate gains of £4.0 million to U+I representing an IRR in excess of 40 per cent and slightly ahead of initial expectations. The announcement today takes the total development and trading profits announced in this financial year to just over £30 million marking further progress towards achieving the Company's anticipated full year gains.
Less than 500 metres from the River Thames and very close to Waterloo station, Becket House is a 146,000 sq. ft. twelve storey, fully-let office building that benefits from a prime location within an area that is undergoing significant change.
Matthew Weiner, Chief Executive, U+I said: "The gains generated from today's disposal further underpin our ability to realise our anticipated full year target for the business. The acquisition of Becket House in joint venture with Proprium was well-timed and enabled us to secure a fully-let, prime office building with future redevelopment potential. An off-market approach from the Freeholder has accelerated the disposal, which will allow us to recycle capital into further regeneration opportunities that suit the ambitions of our evolved business."
Philipp Westermann, Proprium's Head of Europe said: "The acquisition of Becket House was in line with our strategy to capture increasing land value in prime central London locations. Our initial joint venture with U+I has led to further partnership opportunities, as we continue to target investment, redevelopment and regeneration projects in London."
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