News

HPG ACQUIRES LLOYDS TSB BUILDING

January 2009

The Howard Property Group in Regent Street has acquired the Lloyds TSB Building in Gonville Place on Hyde Park Corner in the city.

The property, which was held in the joint Wrenbridge / Palmer Active Value Fund, was acquired for £6.7m. The building is located next to HPG's headquarters in Regent Street and backs onto Parker's Piece. There is secure parking to the rear of the premises. The deal also includes the freehold on four flats located at the rear of the premises and fronting Parker's Piece.

The distinctive Portland Roach stone clad building lies on one of the most prominent intersections in the city centre and occupies a prime commercial site of 0.17 hectares (0.422 acres). Total floor area of the building is 2,310 sq m (24,870 sq ft) split over three levels. The entire property is currently let to Lloyds TSB plc with a banking floor and business centre on the ground floor and office accommodation on the remaining floors. There are over 16 years left on lease. Annual rental is currently £475,000 pax with a fixed uplift in January 2010. Usage is A2 on the ground floor and B1(a) on the two upper floors. Completion of the deal took place in December.

 Michael Summers, Property Director at The Howard Group, orchestrated the deal direct with Wrenbridge. Summers comments; "We are delighted with the acquisition that fits our strategy of acquiring long term secure income from a first class tenant.It is an excellent strategic purchase for the Group and one we have been working on for some time. It is a landmark building in the city with significant asset management potential. We are looking forward to developing a close working relationship with our neighbours."

Senior debt for the acquisition was provided by the Co-Operative Bank. Marie Wood, Regional Corporate Manager, commented; "We are delighted to support the Howard Group with their acquisition of Lloyds House.  The Management Team have a wealth of experience in commercial property investment and development and a proven record of growth and success.  This deal shows that even in today's uncertain economic climate, the Co-Operative Bank is still keen to work with and fund companies with sound business strategies."

HPG own a diverse commercial property portfolio within East Anglia, the Midlands, London and the South East. The current business includes retail shopping centres, distribution warehouse space, industrial estates, offices and some residential.