It will make the payment in two separate tranches. The company will initially pay 5 per cent, equivalent to £ 15.4 million. The remaining £ 292.6 million will be paid on the date of completion of the sale and purchase of the properties, which is expected to be in May 2015.
“The investment will allow the HPL Group to expand its property portfolio in Southbank, Central London by way of the acquisition of the Properties,” Hotel Properties said in a regulatory filing.
“The Southbank has historically been recognized as one of the central London’s leading cultural hubs, being home to the capital’s most famous institutions including the Royal Festival Hall, Tate Modern and National Theatre,” its regulatory filing added
The deal is routed through the company’s indirect wholly-owned subsidiary, HPL (Southbank) Pte Ltd, which had acquired a 30% interest in a newly formed company, Bankside Quarter (Jersey ) Limited to purchase two Jersey holding companies – CEREP Ludgate House Limited and CEREP Sampson House Limited – and these firms in turn will hold freehold interests in two properties – Ludgate House and Sampson House. Each has a share capital of £19.5 million.
The properties comprise Ludgate House and Sampson House, two existing office buildings, and Falcon Point, a neighbouring residential building let on long-leasehold interest to the London Borough of Southwark.
Ludgate House, a ground plus 9- storey building occupying a land area of 1.41 acres, comprises approximately 171,678 sq ft of net internal area (NIA) of office accommodation. Ludgate House was let to United Business Media until March 2015.
Sampson House, a basement, ground plus 6 – storey building occupying a land area of 2.13 acres, comprises approximately 354, 602 sq ft of NIA of office accommodation. It is currently let to IBM until December 2025, albeit with a mutual break in June 2018.