Property investment firm Derwent London has returned to the commercial development market with a £147 million acquisition.
A major
property investment firm has re-entered the commercial property market after a three-year absence.
Derwent London marked its comeback with a £147 million acquisition of a
commercial development on Tottenham Court Road.
The Central Cross building was bought from property investment firm Glebe Holdings, which had purchased the building at the height of the property market in 2007 for £224 million.
Derwent London chief executive John Burns said the firm was delighted to have acquired this sought-after development, which is a strong addition to their portfolio.
"This acquisition provides strong income at economic rental levels, together with opportunities for active management, future refurbishment and improvement of the office space which Derwent specialises in," he said.
However the Daily Telegraph fears that the sale of this HBOS/Lloyds-backed commercial development could be an indication that banks are beginning to sell off commercial property.
The publication claimed last week that UK lenders were about to offload some £50 billion worth of distressed commercial assets.
Posted by Tess Nelson
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