Broadgate West has been sold in one of the largest City investment deals of the year.
Hines and HSBC Alternative Investments have completed the purchase of the 457,000 sq ft development. It is thought to have paid Peter Marano’s Gemini Commercial Investments around £300m in a deal reflecting a yield of around 6%.
It comprises two office building – 1 & 2 Broadgate West. The buildings are fully let for another nine years with an annual rent roll of £19.4m.Tenants include UBS, GFI, Ashurst and Shearman & Sterling.
Paul Forshaw, head of real estate fund management at HSBC Alternative Investments Limited, said:
“Since founding the HSBC club programme we have been able to provide HSBC clients with direct exposure to otherwise inaccessible real estate opportunities globally; the strong take up from investors is certainly testament to the quality of the assets we have acquired.
“The acquisition of Broadgate West in joint venture with Hines fits our strategy of investing in high quality office buildings with credit worthy tenants alongside strong local asset management partners.”
CBRE advised Gemini Commercial Investments.