London – MGPA, the independent private equity real estate investment advisory company, on behalf of MGPA Europe Fund III, and CarVal Investors, a leading global alternative investment manager, in conjunction with Quadrant, are pleased to announce the acquisition of the former Moorgate Telephone Exchange and Post Office at 72 Fore Street in the City of London from UK property company Telereal Trillium. The purchase price was £36 million.
The freehold site has planning consent to develop a ca. 222,000 sq ft NIA office scheme. Located adjacent to the new Crossrail interchange and existing Moorgate underground station, this core City location is one street back from London Wall. The proposed development will include a ground floor and 11 upper storeys. The upper floors will provide efficient floor plates of flexible Grade A accommodation ranging from 22,800 sq ft to 7,500 sq ft, with trading floor capability on the first and second floors. The upper six floors will include roof terraces and City views.
CarVal Investors, MGPA and Quadrant have jointly designed the strategy for this development, which is fully funded and is expected to be completed by the end of 2013. The MGPA development team will act as development manager with Quadrant as development consultant.
Laurent Luccioni, Chief Executive of MGPA Europe, commented: “This acquisition is an excellent example of MGPA’s investment strategy to acquire well-located development sites on which a modern, efficient grade A building can be constructed. This site will take advantage of the current window of opportunity for office development in the City of London given the demand/supply imbalance and we look forward to working with CarVal Investors and Quadrant on this exciting investment.”
Robert Balick, senior managing director and Europe real estate lead of CarVal Investors, added: “This investment demonstrates CarVal Investors’ commitment to the UK market and is at the right point in the City development and rental cycle, enabling us to provide large, flexible and efficient floor plates at a time when new quality, grade A office will be in short supply in the City. In addition, the site is in an attractive location close to three major transportation hubs and the future Crossrail station and we look forward to working with MGPA and Quadrant on this exciting development”.
Other MGPA assets in the London market include, Exchange Tower, in Docklands, which was acquired in Summer 2010.
CB Richard Ellis and BNP Real Estate acted for the purchasers; and DTZ acted for Telereal Trillium.