Brookfield has completed the purchase of CityPoint, 1 Ropemaker Street, EC2, for £561m, in the largest UK property investment deal since the EU referendum.
Beacon Capital Partners bought the building in 2007 for a then-UK record £650m, but defaulted on £439m of loans secured against it in 2012. KPMG and Mount Street Mortgage Servicing were appointed as receivers to manage the property.
The two receivers pursued a number of asset management initiatives, increasing the value of the building by £54m in 2014.
In 2014, Brookfield bought the junior loan for about £75m in an effort to eventually take full control of the building.
The sale price of £561m was enough to repay all remaining liabilities. The deal represents the largest property investment deal since the EU Referendum, according to Real Capital Analytics.
Ed Boyle, partner at KPMG, said: “We are delighted to have achieved a sale of CityPoint against the backdrop of the Brexit referendum, which is a vindication of the receivers’ value-enhancement strategy regarding the property over the last four years.”
GM Real Estate advised special servicer Mount Street; Eastdil Secured acted for the asset manager and original owner of the building, Beacon Capital Partners.
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