LaSalle Investment Management has exchanged contracts on the acquisition of numbers 1 & 2 Dorset Rise in Blackfriars, London in a £47-million (approx. 54.7-million) transaction. The acquisition of the 96,553 ft² (approx. 9,000 m²) of offices from Greenhills Asset Management has been made on behalf of one of LaSalle's major pension fund clients.
No.2 Dorset Rise, which is 82,764 ft² of former office space, has been leased to Whitbread Group Plc for 31 years to trade as a 258 room Premier Inn Hotel. The annual rent is subject to five yearly reviews against the Consumer Price Index ('CPI'). LaSalle will fund the £9.33 million conversion costs. At the same time, No. 1 Dorset Rise will be refurbished and leased as a separate 13,789 ft² of office space.
Dorset Rise, EC4 is centrally located for both business and leisure visitors, close to Blackfriars train station, St Paul's Cathedral, the Tate Modern and close to the restaurants and theatres of Covent Garden. Construction work is expected to start in November 2011 and the Premier Inn hotel is scheduled to open in the summer of 2012.
John Yeend, Director, LaSalle Investment Management said, "We are delighted to acquire this freehold property in the City of London. We expect it to deliver secure, index-linked income for our clients."
Derek Griffin, Head of Acquisitions Greater London, Whitbread Hotels and Restaurants said, "Adding Dorset Rise to our portfolio of London hotels is an excellent result for Premier Inn. Our customers want great locations and value from Premier Inn. It's another example of Whitbread doing an innovative deal to expand our fast-growing portfolio."
John Miles & Co acted on behalf of LaSalle Investment Management.
Source: Citigate Dewe Rogerson