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MGPA in talks over £2.5bn London office

MGPA, the European and Asia-focused private equity real estate firm, is reportedly discussions with quoted UK property company British Land about buying a stake in the Broadgate complex by Liverpool Street station in London's financial district.

MGPA, the pan Euro and Asia private equity real estate firm, is in discussions to buy 50 percent of London's Broadgate office complex in the City of London from UK property company British Land.

The Financial Times reported that the estate in the City was valued at more than £2.5 billion ($3.67 billion; €2.75 billion) in its last set of results for the third quarter to 31 December 2008.

It said that the estate is financed through a single £2.1 billion securitization structure and that a deal could see MGPA assume half of this debt. This would mean it would not need to commit much equity to the purchase.

Should a deal materialize, it would be the largest foray into UK real estate by MGPA, which is part owned by Australia's Macquarie bank, since the fund manager raised $1.3 billion in equity for investing in Europe last June.

That fundraising was part of a wider $5.2 billion final equity close for its MGPA Fund III, the remaining $3.9 billion of which, was raised for investing in Asia.

MGPA would not comment when approached on the matter.