Back
News

Gaw scales London Wall

A Gaw Capital-led consortium is in talks to buy Alban Gate, EC2, for more than its £300m asking price.


US private equity group ­Carlyle, which began entertaining offers for 125 London Wall last year, has agreed to a period of exclusivity with a Korean consortium being led by Hong Kong-based Gaw. It is not yet formally under offer, but heads of terms at £308m, reflecting a 5.8% yield, are being drawn up.


125 London Wall 570p


Completion would mean Gaw has led or invested in close to £1bn of London deals, including Marks & Spencer’s Paddington Waterside headquarters, W2, and the Lloyd’s Building, EC3, on behalf of China’s Ping An.


It has spent months putting together the consortium for this latest buy, which is understood to include some of the same investors it worked with on its debut UK deal, Vintners Place, EC4, in September 2012.


The Vintners consortium included the Korea Federation of Community Credit Cooperatives, the Korean Teachers’ Credit Union and Hyundai Asset Management.


The 382,000 sq ft Alban Gate is let to JP Morgan until 2025, generating a rent roll of £18.3m, but the bank is not in occupation.


JP Morgan has completed an extensive rolling refurbishment programme, letting 138,000 sq ft to Nabarro in 2012.


More recently, it has sublet to the Financial Reporting Council and Invesco and this week put 25,000 sq ft under offer to Redburn.


A further 50,000 sq ft is under offer, leaving just 15,000 sq ft available. The latest deals are at rents of around £43.50, compared with JP Morgan’s blended rent of around £47.50.


For Carlyle, a deal would leave it with just one remaining asset from the White Tower portfolio formerly owned by Simon Halabi, which it bought in July 2010 for £671m.


It has already completed the sales of Millennium Bridge House, EC4, Chiswick’s BSI Tower, W4, and 60 Victoria Embankment, EC4. Should Alban Gate complete, it will take White Tower sales past £600m.


The final assets from the portfolio, Sampson House and Ludgate House, SE1, are expected to be brought to market in the coming weeks.


Carlyle gained planning ­permission for a 1.4m sq ft mixed-use scheme on the South Bank site in October.


The scheme is expected to attract a guide price of around £300m if Carlyle chooses to sell out entirely; however, it could still bring in a joint venture development partner.


GM Real Estate is advising Carlyle.


 


jack.sidders@estatesgazette.com


 

Up next…