Henderson Global Investors teams up with Istithmar P&O Estates for £70-mln. development (UK)

Henderson Global Investors has entered into a joint venture with Istithmar P&O Estates (IP&OE) to develop the final phase of Regent Quarter; its highly successful mixed-use regeneration scheme located on York Way, adjacent to Kings Cross Station, London.

Regent quarter

The scheme will include office, residential and retail space.

Henderson, on behalf of its Central London Office Fund, has agreed to equity fund the development expenditure for the final stage of the scheme known as Block D, which was granted detailed planning consent last year. It will comprise a new BREEAM 'Excellent' office building of 3,307 m², 39 new residential apartments, restoration of a two-story Grade II listed horse stable to studio offices, and three retail/A3 units.

IP&OE has retained an equity interest and will be the development and project manager for the scheme which has a total anticipated end value of ca. £70 million (approx. €82 million).

Nick Deacon, Fund Manager within the Central London team at Henderson, said: "The final phase of Regent Quarter is an exciting addition to our portfolio which fits well with our current investment strategy. Kings Cross, Regent Quarter and the surrounding area has become a highly desirable location due to its excellent communications and proximity to the West End and City of London. With Kings Cross and St. Pancras stations on the doorstep, the rest of the UK and now Europe are within easy reach.

"We are confident that we will be able to attract new high quality tenants to the scheme and are optimistic that we can maximize returns for our investors. We are also delighted to be working in joint venture with Istithmar P&O Estates who have a wealth of expertise on similar development projects."

Graham Corser, Development Director Istithmar P&O Estates, added: "Following successfully completing the earlier phases we went to the market seeking buyers for Block D and ended up structuring a partnership that worked favorably for both parties. The creation of this partnership with Henderson enables us to co-invest alongside a high quality partner who shares our ambition and optimism for the scheme."

The commitment follows hot on the heels of the acquisition of Regent's Wharf, King's Cross by Henderson for its Central London Office Fund II. This 6,224-m² attractive freehold office complex is let to three tenants with an average unexpired lease term of 5.5 years.

BNP Paribas Real Estate acted for Henderson in the acquisition.

The Henderson Central London Office Fund has been confirmed as the top performing 'Specialist' fund as measured by the IPD UK Pooled Property Fund Indices over the three-year period to December 2010.

Source: Henderson Global Investors

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