Barwa announces the Purchase of Park House development in London’s Oxford Street of approximately £[250] million

Barwa Real Estate Company Q.S.C. (“Barwa”) announces that it has acquired the Park House development in London’s Oxford Street from Land Securities for a consideration of approximately £[250] million.

In addition a profit share will be paid by Barwa within 12 months of practical completion. Based on current expectations as to office and retail rental values, this profit share is estimated will be around £33m and is capped at £50m.

The development, comprising a total of 330,000 sq ft, which has full planning permission, includes 163,000 sq ft for offices, 88,000 sq ft of retail space and 70,000 sq ft of residential accommodation. It is anticipated that the development will be completed by November 2012.

Land Securities will supervise the construction of the development, the building costs of which will be met by Barwa.

The acquisition is the first major wholly-owned investment made by Barwa in the UK. The purchase fits both with Barwa’s strategy to invest in leading edge international commercial property and its confidence in the long term growth potential of central London.

Mr. Ghanim Alsaad, Chairman and Managing Director of Barwa, commented:

“We are delighted to have acquired a major site in central London which is set to become an important feature in one of the busiest and most successful locations in the UK capital. The investment demonstrates our commitment to Europe as part of our growth strategy and signals our interest in strengthening our portfolio interests in London.”

PCP Capital Partners was Barwa’s financial adviser on the transaction. CBRE advised Barwa and PCP Capital Partners.

Source: Qatar Exchange