Blackstone purchase London business offices.
Chiswich Park business complex has been acquired by Blackstone.
Blackstone have beaten the competition to purchase the Chiswich Park business complex in West London.
The company secured the deal for £480 million despite competition from London & Stamford. The deal is being hailed as a positive sign on the UK debt market.
The Chiswick business park spans 1.9 million square feet and is currently owned by the Chiswick Park Unit Trust and managed by Aberdeen Asset Management, Stanhope and Schroders.
Before the purchase the last valuation of the complex stood at £350 million but then due to QVC and Tullow Oil taking out lease contracts the price was pushed up to £450 million.
Many different companies expressed interest in the property including Orchard Street Investment Management, Moorfield, London & Stamford Property and British Land
The sale will represent a yield of around 7.5% once vacant space is 100 percent leased and all the relevant developments are completed.
Recent tenants include Orbis Technology who took out 35,000 square feet of office space in January 2010 and television shopping media company QVC who leased 143,000 square feet of office space in February.
Currently Chiswick Park has 74,166 square feet of vacant office space all on the market for around £32 per square foot.
The business complex is Blackstone’s second largest UK purchase after the stake they took in the Broadgate office complex which is also located in London during 2009.