Blackstone has sold its 50 per cent stake in Broadgate, the office and retail complex, at the heart of the City. The £1.7 billion sale comes four years after the US private equity firm paid £1.07 billion to buy its share from British Land. The identity of the buyer has not been revealed but it is believed to be a sovereign wealth fund from the Far East.
Blackstone placed its Broadgate stake on the market earlier this year in a bid to raise funds for further European commercial property acquisitions. The Evening Standard reports that the deal involves £987 million of debt and £77 million of equity which will leave the company with a clear profit of £600 million on its initial investment.
Broadgate was built in phases beginning over 20 years ago and has contributed to the City becoming a leading international financial centre. It is made up of 16 buildings providing 4 million sq ft of office space and counts some of the world’s top financial institutions among its tenants.
At the time of its conception, Prime Minister Margaret Thatcher described Broadgate as the largest property development in London since the rebuilding following the Great Fire of 1666.
Although it has since lost this distinction to Canary Wharf it continues to expand and currently has a further 700,000 sq ft under development. In addition Crossrail will arrive on the site in 2018.
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