Gatehouse Bank sells Procter & Gamble's UK HQ to unnamed MidEast investor
Kuwait-owned Gatehouse Bank, a Shariah compliant investment bank based in London, said on Wednesday it has completed the sale of the Procter & Gamble UK headquarters building, in a deal worth £33.68m ($53.8m).
Gatehouse, whose parent company is the Securities House in Kuwait, said the net initial yield on the deal was 7.49 percent.
The company said the sale was made to a private Middle Eastern property investor, without giving further details.
It added that the deal represented an "excellent return" for Gatehouse's investors, who have benefited from annual returns of 10 percent during the three year holding period, and an overall 26 percent return on investment.
Acquired for £31.5m in December 2009, the Procter & Gamble building was the first property acquisition Gatehouse advised on.
The Property occupies a prominent position within one of the leading business parks in the South East of England, providing 109,290 sq ft of Grade A office accommodation.
The property is fully leased to Procter & Gamble until June 2020, with no breaks.
Adam Cavanagh, executive vice president and head of Real Estate said: "Investors are continuing to look for well positioned buildings with a secure, long-term income stream. When acquired, the P&G building typified these criteria. However, now the lease term has fallen below 10 years, selling at this point guarantees the best return to our investors."
Since its inception in 2008, Gatehouse Bank said it has established a global portfolio worth in excess of £1.25bn.