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Gatehouse Bank completes £32.65 million acquisition of InterContinental Hotels Global HQ

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27 january 2011
Source : Gatehouse Bank

Gatehouse Bank plc (Gatehouse), a wholesale Shariah compliant investment bank in the City of London, has completed the £32.65 million acquisition of the InterContinental Hotels Group Global Headquarters in Denham, Buckinghamshire. The 97,340 sq. ft. property is fully occupied by InterContinental Hotels Group until July 2022, providing a 12 years term certain income with no breaks.   Rare for the UK market, the lease benefits from minimum fixed rental uplifts of 13% in both 2012 and 2017.

The Property comprises a highly specified headquarters office building which was comprehensively refurbished in 2001, including re-cladding of the elevations, a new double-height atrium and new mechanical and electrical plant throughout. In 2007, InterContinental Hotels Group refitted the interior of the building to an extremely high standard, including open plan office accommodation, break-out areas, restaurant, gym, shower facilities and conference rooms. The building is located in a well-established London sub-market with other major international occupiers in the region including Procter & Gamble, Sony, Bosch, Cadbury and Kia Motors.
 
Philip Churchill, Executive Vice President and Head of Real Estate at Gatehouse Bank said:
 
“There is considerable demand at the moment for properties let to strong tenants on leases of 10 years or more, and it’s interesting to note that investors are starting to look at locations outside of central London where properties have better pricing levels. The Western sector of the M25 motorway is a key strategic location for corporate occupiers, due in part to its proximity to national and international transport links, and the InterContinental Hotels deal is a prime example of the way in which interest is shifting away from the capital.”
 
Adam Cavanagh, Vice President of Real Estate at Gatehouse also stated, “The purchase price in this deal reflects a significant discount to a comparable properties in central London, where prime yields are now around 5.00%, and the lack of speculative development means that we can expect to see a further uplift in rental values over the coming months.”
 

Gatehouse Bank was advised by Knight Frank. The vendor was a syndicate of private investors managed by Tritax who were advised by SG Commercial.

 

To see the news : www.gatehousebank.com