£480m London office park purchase announced

Office design news from Morgan Lovell

Published on 10-01-2011

Chiswick Park in West London is poised for a £480 million sale to US private equity firm Blackstone, it has been claimed.

The 1.9 million sq ft development is presently owned by the Chiswick Park Unit Trust and managed by Aberdeen Asset Management, Schroders and Stanhope, Property Week reports.

However, Blackstone is pursuing the possible purchase of the site through the previously moribund commercial mortgage-backed securities market - a development that could breathe life back into the UK's debt market.

The sale of the property would represent a 7.5 per cent yield and could see the buyer drive up rents, as the development has remained attractive to tenants despite the impact of economic downturn.

Elsewhere in the capital, head of commercial division for Cluttons John Wood recently forecast that office space in London's West End could see rents rise by up to eight per cent by 2015.

"Whilst occupier demand continues to improve in the West End, incentives are falling, with rents moving up across most areas as reduced availability becomes increasingly evident," he commented.

Posted by Ian Johnson