Dubai: Barwa, a leading international property developer and investment company based in Qatar, said, it has acquired the Park House development in London’s Oxford Street from Land Securities for a consideration of approximately £250 million.
In addition a profit share will be paid by Barwa within 12 months of practical completion.
Based on current expectations as to office and retail rental values, this profit share is estimated will be around £33 million and is capped at £50 million, a company statement said.
The development, comprising a total of 330,000 square feet, which has full planning permission, includes 163,000 sq ft for offices, 88,000 sq ft of retail space and 70,000 square feet of residential accommodation. It is anticipated that the development will be completed by November 2012.
Land Securities will supervise the construction of the development, the building costs for which will be met by Barwa as owner-developer.
The acquisition is the first major wholly-owned investment made by Barwa in the UK.
The purchase fits both with Barwa’s strategy to invest in leading edge international commercial property and its confidence in the long term growth potential of central London.
Ghanim bin Saad Al Saad, Chairman and Managing Director of Barwa, commented: “We are delighted to have acquired a major site in central London which is set to become an important feature in one of the busiest and most successful locations in the UK capital. The investment demonstrates our commitment to Europe as part of our growth strategy and signals our interest in strengthening our portfolio interests in London.”
PCP Capital Partners was Barwa’s adviser on the transaction. CB Richard Ellis advised Barwa and PCP Capital Partners.
