Sale of 27 Berkeley Square, Mayfair, London, W1
The Client
Crown Dilmun engaged in inner city residential property development schemes across the UK. An SPV of theirs owned the long leasehold interest of 27 Berkeley Square and held it for their own occupation.
The Project
To sell the long leasehold interest in the building. It was held on a 125 year lease from Grosvenor West End Properties, expiring in March 2123 and was subject to a 10% gearing.
The Challenge
Alex was instructed to achieve the best possible price for the building and whilst that seems an easy enough task to carry out with a prime building on Mayfair's best square, the main challenge would be in finding the right buyer for the building, who would pay the highest price, but without actually marketing the building far and wide.
Top prices are only paid when purchasers believe that they are one of only a few being approached. This exclusive marketing approach can only work sometimes and only with prime buildings in prime areas.
The Solution
Initial reporting was carried out to provide an overview of capital values across the prime areas of the West End in similar buildings and to see what buildings, if any, would compete.
Discreet enquiries were made around the owner occupier market by Alex and a select number of potential buyers were invited to view the property, some of whom were well known international figures.
After a handful of viewings and a number of un-solicited offers from many different sources, Hyde Park Properties Ltd, an SPV of a wealthy Slovenian businessman was identified as the perfect purchaser and completed the sale within a limited time frame, at a purchase price of £15,750,000, which reflected a capital value of £2,507 per sq ft, which at the time was believed to be a record office value both in the UK and Europe.
The Benefits
All criteria of the client's aspirations were met. The building was sold to a buyer who had demonstrated that he could purchase the building within a tight time frame, including obtaining superior landlord's consent. The buyer also demonstrated that he would pay the price as agreed.