Evans Randall, the privately-held UK investment banking and private equity group, has acquired the newly-completed Drapers Gardens development in the City of London for £242.5 million (approx. €296.4 mln.) from a joint venture including Canary Wharf Group and a subsidiary of the Morgan Stanley Real Estate Funds.
Michael Evans, Chairman of Evans Randall, said: "Drapers Gardens offers good long-term investment prospects, given the length of lease and the quality of both tenant and building. It sits well within our portfolio of trophy City properties and is part of an ongoing strategy of prime real estate acquisitions in London and major continental cities. The lease benefits from a minimum uplift of 2.5% per annum for each of the first five years and a maximum uplift of 4.5% per annum. It is this certainty of rental growth that makes it particularly attractive to us"
Euro Hypo Bank is providing debt for the acquisition. Evans Randall's retained adviser CB Richard Ellis represented them in the transaction.
Kent Gardner, Chief Executive of Evans Randall added: "The acquisition of Drapers Gardens with a 25-year lease to BlackRock furthers our strategic focus on newly-developed, long-let, prime City assets which are rack rented with open market rent reviews. The acquisition comes just three months after the successful completion of our Riverbank House development and the granting of a new 25.5-year lease to Man Group plc."
The 13-story Drapers Gardens development, completed in December 2009, occupies a prime City of London location and boasts panoramic views of central London and striking roof gardens on three levels. It provides office floor plates from 12,000 ft² to more than 25,000 ft².