As the Era of the Irish in London’s property market draws to a close, it seems that the Era of the Malaysians is getting into full swing. News first reported yesterday by the UK’s commercial property portal CoStar.co.uk and re-reported today in the UK magazine Property Week (free registration required) that Dublin-based investment company, Jaguar Capital has sold an office block in the City of London for GBP 165m (€205m) . The buyer is identified as Lembaga Tabung Haji, the Malaysian Hajj pilgrims fund board, in partnership with Gatehouse Bank.
Number 10 Queen Street Place is close to the north bank of the Thames and just south of Cannon Street was purchased in March 2008 for GBP 146.3m. According to Property Week, “the 221,198 sq ft 10 Queen Street Place comprises offices, retail, a 20,000 sq ft roof terrace and accommodation arranged over basement, ground and four upper floors. Beneath the building is a car park, operated by NCP.”
Jaguar Capital invests in a number of sectors including food, renewable energy and property. It lists number 2 Heuston South Quarter in Dublin as well as office blocks in London, Edinburgh and Prague in its property portfolio. It claims internal rates of return of 30% and over on its two property sales to date, the IRR on this sale should be less but still positive – many Irish property investors will be envious!
The sale marks the latest in a series of high profile disposals by Irish investors who splurged on London property during the mid 2000s. In August 2012, David Arnold’s D2 sold 23 Savile Row in London’s West End for €275m, and the D2’s Woolgate Exchange in the City of London is still on the market at around €300m. NAMA sold up its interest in the Battersea Power Station site as part of a deal worth GBP 400m (€499m) with the buyer being the Malaysian outfit SP Setia. Property powerhouse CB Richard Ellis claimed that Irish investors were again heavy sellers of London property in the first six months of 2012. Irish investors sold GBP 545m (€700m) in London in the first six months of 2012, compared with GBP 1bn for the same period in 2011.