Trocadero rescued by Burford for pounds 94m: Office space will be converted to leisure use
Burford is understood to have fought off rival bids from British Land and Chelsfield for the 411,000 square foot site in the heart of London's West End. Previous owners include Brent Walker and Ireland's Power Corporation.
Burford, which has spent more than pounds 300m on properties over the past 18 months, is to fund the purchase out of its banking facilities, doubling gearing to 75 per cent.
Nick Leslau, chief executive, said Burford could spend a further pounds 55m while still remaining under the company's self-imposed ceiling of 100 per cent gearing.
He said the acquisition of the Trocadero would increase the proportion of Burford's portfolio represented by properties requiring intensive management attention, an area where the company has a reputation for adding value.
Initially Burford will receive rent of pounds 8.6m, a yield of 9 per cent, but the attraction of the site is the potential to increase the spend of the 14 million people who pass through the building every year.
It is expected that office space of 115,000 square feet will be converted to leisure use in a bid to increase the property's rental income. More than a quarter of the space is vacant.
At the peak of the property market boom, the Trocadero was valued at more than pounds 200m, but it was hit hard in the recession.
- 1 Frank Lampard's face drops when Holly Willoughby introduces him as a 'Man City legend'
- 2 'Do not give them a reason': Baltimore man divides police and rioters in hope of avoiding violence
- 3 X Factor in crisis as numbers of people auditioning plummets
- 4 Baltimore riots: Furious mother marches her son home live on TV
- 5 General Election 2015: Stephen Hawking says he will vote Labour
General Election 2015: Tories sack candidate who said she would never support 'the Jew' Ed Miliband
Bali Nine executions: Indonesia confirms killings of Andrew Chan and Myuran Sukumaran will go ahead
The four utterly contradictory polls that tell the story of this election and why it is pointless trying to predict the outcome
General Election 2015: Prospect of Labour-SNP coalition makes one in four voters less likely to support Ed Miliband, says survey
Baltimore riots: Furious mother marches her son home live on TV
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Aaron and Melissa Klein: Oregon anti-gay bakers ordered to pay $135,000 after refusing to make cake for same-sex wedding
EU exit would hit UK economy much harder than neighbouring countries, study finds
Andrew Lloyd Webber: Phantom of the Opera writer mocked after issuing a warning about Ed Miliband and Nicola Sturgeon
General election 2015: Labour will toughen hate crimes legislation surrounding Islamophobia
iJobs Money & Business
£Basic (OTE) + Uncapped Commission: Guru Careers: A Stockbroker (qualified / p...
£20000 - £60000 per annum: Recruitment Genius: Are you recently QCA Level 4 qu...
£20000 - £22500 per annum + OTE £30K: SThree: SThree Group have been well esta...
£25 - 30k: Guru Careers: We are seeking an Application Support Analyst / 1st L...