Terrace Hill and Doughty Hanson & Co Real Estate announced today they had bought 1 Howick Place in London’s Victoria from House of Fraser, in a deal believed to be worth £60m.
As reported in Property Week (news, 06.10.06), House of Fraser’s new parent company, Icelandic retail investor Baugur, is conducting a short-term sale and leaseback of the headquarters property of about 18 months before releasing it for development.
The site will be sold without planning permission after previous consent for an office scheme lapsed.
The joint venture acquired the site under DHCRE’s ‘Solutions for Corporates’ programme. The site will be redeveloped as a mixed-use office and residential scheme, with an estimated end value of around £180 million.
Churston Heard acted for Baugur.
Doughty Hanson & Co European Real Estate’s Fund II is investing £25.2 million of equity. This is the fifth investment by Fund II and the second in the UK, the first being the Kings Hill Business Park in Kent, held in a joint venture with Liberty Property Trust.