Carlyle to Patch a £671m Deal For Acquiring Halabi's London Office
Carlyle to Patch a £671m Deal For Acquiring Halabi's London Office

Carlyle, the private equity group, has announced to acquire six offices across London, including Alban Gate and 60 Victoria Embankment, home to JPMorgan in the City, under a deal reported to be worth £671m.

These properties were a portion of empire previously owned by the family trusts of Simon Halabi.

The company sees the portfolio, which includes offices for UBS and IBM as well, to offer robust refurbishment and redevelopment opportunities, as many of the rents will no longer be there over the next five years.

The offices are reported to cover 1.6m sq ft of area and will assist in incurring nearly £62m of rental income every year.

The nine offices has backing of £1.15bn of bonds issued by the White Tower 2006-3 vehicle, however, the squeeze in the value resulted in violation of loan-to-value covenants, thereby triggering bondholders to call in the debt previous summer.

Robert Hodges, managing director of Carlyle European Real Estate, said the deal, the group's first notable UK property acquisition since 2008, offered a "rare opportunity" to acquire "landmark assets".

The acquisition is reported to be assisted by providers including BNP Paribas, Credit Agricole and Societe Générale, behalf of the Carlyle European Real Estate Partners III fund.

In addition, AXA Real Estate Investment Managers are also a part of the above list of financers for the portfolio.

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