CoStar UK: Mercer doubles up on HQ sales
Fri 10 May 2013
Mercer Real Estate Partners, the privately owned UK focused real estate investment firm and asset manager, has exchanged on two off-market London office sales for in excess of 40m in the past two weeks, CoStar News understands. Markets sources said Mercer as asset manager to Peakside Capital has exchanged contracts to sell 80 Hammersmith Road in West London to Danmerc, part of the Cording Group, for circa 20m.
The sale represents a significant premium to the price Peakside paid for the building under two years ago. Peakside Capital, on behalf of its Peakside Real Estate Fund I, bought the 41,574 sq ft building in 2011 for 7.4m
with vacant possession. Mercer and Peakside carried out an eight month redevelopment and refurbishment and have subsequently substantially leased it. In May 2012 10,565 sq ft was leased to estate agent Marsh & Parsons. Online gaming software supplier Playtech then leased 13,850 sq ft of offices. Quoting rents at the scheme are 37.50 per sq ft. The letting agents are Hanover Green and Strutt & Parker. Separately, market sources said Mercer had sold Cobham House, 20-26 Black Friars Lane, EC4 for in excess of 20m a circa 5.5% yield - to a European pension fund.
Mercer bought the long leasehold interest in the 33,200 sq ft of offices from The Worshipful Society of Apothecaries in 2011. The building is being refurbished for completion late summer 2013 and has been prelet this quarter to Avanti Group. Farebrother acted as leasing agent. GM Real Estate acted for Mercer. Mercer Real Estate Partners is a privately owned real estate investment firm targeting the office, residential, retail, industrial and hospitality sectors across the UK and Europe. Mercer professionals have transacted over $5bn of asset value across a diverse range of real estate investment types including single assets, asset portfolios, land, public and private companies, recapitalizations, distressed developments, senior and subordinated whole loans and CMBS. All parties declined to comment.