LONDON, UNITED KINGDOM and MONTREAL, Jan. 28, 2013 /CNW Telbec/ -
Ivanhoé Cambridge and TPG, a leading global private investment firm,
announce the acquisition of Woolgate Exchange, a high-quality office
building located in London's business district. 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 twelve months.
The 351,000 square-foot (33,000 square-metre) trophy asset is located in
the heart of the City of London, close to the Bank of England, and has
been acquired through a complex and innovative financial structure.
Ivanhoé Cambridge is co-investing with TPG which has originated the
transaction. The asset will be co-managed by the joint venture.
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
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. The
asset is currently 100% leased to Portigon AG, with high-quality
sub-tenants including Investec Asset Management, Sidley Austin and the
University of Chicago.
"Woolgate Exchange is among the outstanding assets in the London market,
whose value can be optimized with the combined expertise of TPG and our
teams," said Daniel Fournier, Chairman and Chief Executive Officer of
Ivanhoé Cambridge. He continued: "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."
"This investment is perfectly in line with our strategic positioning in
London," added Mr. Fournier. "We are convinced that it will generate
attractive returns for our depositors."
Kelvin Davis, TPG Partner, said: "This innovative transaction again
highlights our ability to source and execute quality property
investments through complex CMBS restructurings. We believe there will
be a number of other similar opportunities throughout Europe in the
years ahead. TPG is fortunate to have a great partner in Ivanhoé
Cambridge, with whom we collectively bring extensive experience in real
estate investing and asset management."
About Ivanhoé Cambridge
Ivanhoé Cambridge is one of the 10 largest real estate companies in the
world. Through its multiple subsidiaries, it holds assets in 24
countries valued at over Cdn$30B as of December 31, 2011. Ivanhoé
Cambridge is a real estate subsidiary of the Caisse de dépôt et
placement du Québec (lacaisse.com), one of Canada's leading institutional fund managers with Cdn$159B
held in net assets. For more information, visit ivanhoecambridge.com.
About TPG Real Estate
TPG Real Estate is the real estate platform of TPG, a leading global
private investment firm founded in 1992 with $54.5 billion of assets
under management and offices in San Francisco, Fort Worth, Austin, New
York, São Paulo, Hong Kong, London, Paris, Luxembourg, Melbourne,
Moscow, Mumbai, Shanghai, Chongqing, Beijing, Singapore and Tokyo. TPG
has extensive experience with global public and private investments
executed through leveraged buyouts, recapitalizations, spinouts, growth
investments, joint ventures and restructurings. TPG Real Estate has
committed approximately $1.5 billion of equity to real estate
investments over the last two years. Many of the firm's recent
investments have focused on property-rich platforms, including
investments in Catellus Development Corporation, ST Residential, Taylor
Morrison, Parkway Properties Inc. (NYSE:PKY), Merin BV (formerly
Uni-Invest BV) and Mission West Properties.
Further information is available at www.tpg.com
Image with caption: "Ivanhoé Cambridge and TPG complete acquisition of Woolgate Exchange. (CNW Group/Ivanhoé Cambridge)". Image available at: http://photos.newswire.ca/images/download/20130128_C8994_PHOTO_EN_23066.jpg
SOURCE: Ivanhoé Cambridge