A joint venture between Endurance Land and their partner, Angelo, Gordon LLP, has sold the long leasehold interest in 160 Blackfriars Road, London, SE1 to a vehicle managed by Maya Capital LLP, with equity partner, AnaCap Financial Partners.
Acquired in 2016 for £61.9 million, the building comprises 105,935 sq ft of office and retail accommodation, which is multi-let to three office occupiers and three retailers, with the lower ground and first to fourth floors sold with vacant possession, following the agreement of a significant surrender premium from the vacating occupier.
Since acquiring the building, Endurance Land and Angelo Gordan have undertaken a number of value enhancing asset management initiatives, including securing a planning consent from the local authority, Southwark, to develop a 169-bedroom hotel on the existing surface car parking to the east of the office building. Prior to the marketing of the investment, the hotel was successfully pre-let to Ruby Hotels for a 30 year term, with the benefit of index linked rent reviews.
Furthermore, two new 150 year head leases were agreed with the freeholder, The City of London, to create enhanced market liquidity for the asset (extending the existing term from circa 103 years unexpired).
Jonathan Fletcher, CEO of Endurance Land, said: “The sale of 160 Blackfriars Road is the culmination of a highly successful business plan and asset management execution by Endurance Land and our partners, Angelo Gordon . Having secured a rare hotel planning consent, we subsequently pre-let the hotel in its entirety, whilst also executing a number of value accretive interventions to the office building to deliver returns in excess of the underwrite. The sale is a further example of Endurance Land’s track record of acquiring under valued assets and undertaking robust business plans to create value for our partners.”
Mike Diana, Managing Director, Europe Real Estate of Angelo Gordon, said: “Excellent result by the whole team, we look forward to working with Endurance Land on future endeavours.”