Ivanhoé Cambridge is co-investing with global private investment firm TPG in order to acquire the 351,000-sq.-ft. Woolgate Exchange, a well-known office building located in London's business district, close to the Bank of England. The asset will be co-managed by the joint venture. The transaction represents an investment of £265M (Cdn$400M), bringing the total investment in London for Ivanhoé Cambridge to more than £400M (Cdn$650M) over the past 12 months.
In 2012, TPG entered into an agreement to acquire the junior loan from the Irish Banking Resolution Corporation. By working with the senior and junior creditors the partnership was subsequently able to acquire the asset in a proprietary transaction. Previously, the asset was held in a defaulted capital structure. The purchase will partially repay the junior loan secured against the building, fully repaying senior bondholders.
Woolgate Exchange is situated on a 1.6 acre (0.65 ha) freehold site with three underground levels, a ground floor and eight upper floors, and is currently 100 per cent leased to Portigon AG, with sub-tenants including Investec Asset Management, Sidley Austin and the University of Chicago.
"Based on our strong European asset portfolio valued at more than Cdn$6B, which we are currently repositioning, and our knowledge of the London market, we are building a platform with the intention of opening an office in London," said Daniel Fournier, chairman and CEO of Ivanhoé Cambridge.