The headquarters of national newspaper The Telegraph is under offer to Kennedy Wilson Europe Real Estate.
Since investors Kennedy Wilson Real Estate were listed in February 2014 they have not yet made a West End purchase. If this deal with the Victoria headquarters were to go through it is expected to fetch over £200 million. Since their listing they had made £1 billion worth of asset acquisitions comprising around 6.5 million sq ft in commercial space.
111 Buckingham Road is currently owned by Green Property; however Kennedy Wilson offered their initial bid before the owners began to entertain other investor interest. Green Property acquired the building from Achilleas Kallakis’s Pacific Group six years ago. It was referenced in the court case which saw Kallakis receive a conviction for conspiring to defraud Allied Irish Bank and Halifax Bank of Scotland.
The office block with its 230,000 sq ft of space was listed for sale earlier in 2014 with an expected yield of 5%. Kennedy Wilson recently issued out shares which totalled over £350 million which will be reinvested into their expansion plans.
At the moment The Telegraph occupies half of the Victoria building, while the other tenants include Advent Financial and Regus. Victoria is currently experiencing a change in its commercial portfolio, having once been seen as a government office location and now moving toward high-end offices and residential spaces. New Scotland Yard is being sold by the Met Police and JLL as a residential redevelopment project which expects to fetch prices over £300 million.
Kennedy Wilson is said to be looking into other international investments including properties in Ireland, Spain and Italy.
CBRE advised Green. All parties declined to comment.