The Times Online - June 6, 2006
PA Consulting is to sell its London headquarters at 123 Buckingham Palace Road for more than £175 million as part of a sale-and-leaseback deal, The Times has learned.
The management, systems and technology consulting company has appointed Cushman & Wakefield Healey & Baker, the global property consultant, to market the building in London’s Victoria, which it bought for about £107 million in 1999.
PA Consulting occupies about half of the 194,000 sq ft property. The rest is leased to the Highways Agency, BSkyB and Korn/Ferry International. The sale is designed to cash in on bumper demand to buy commercial property assets. Neil Gorman, head of global real estate at PA Consulting, said that capital from the sale would be reinvested in developing new business in new markets.
PA plans to agree a new 20-year lease on the space that it occupies in the building at a rent of about £50 per sq ft. If the building is sold at the £175 million sale price, that would generate a rental yield of more than 5.25 per cent for the purchaser.
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Tuesday, June 06, 2006
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