17 Jun 2010
(MENAFN) Qatari property firm Barwa Real Estate said that it will pay around $371 million to buy a large property development in London from Land Securities, Reuters reported.
Barwa Chairman, Ghanim bin Saad Al Saad, said that this acquisition of the Park House development on London’s Oxford Street is the first major wholly-owned investment made by Barwa in the UK.
He added that this investment demonstrates Barwa’s commitment to Europe as part of its growth strategy and signals its interest in expanding its portfolio interests in London.
Under the agreement, Barwa will pay a share of the profits to Land Securities within 12 months of completion. Based on current office and retail rental value growth expectations, this profit share is estimated to be nearly $48.4 million.
The development comprises of offices, retail space and residential accommodation. It is due for completion by November 2012.
Managing Director of Land Securities’ London portfolio, Robert Noel, said that the company would recycle proceeds from the sale in its growing speculative development pipeline, one of the largest in the UK quoted property sector.
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