O'Donnell in talks to sell €210m UK building
Published 02/03/2011 | 05:00
Solicitor Brian O'Donnell is reported to be in advanced talks with a private Saudi Arabian investor to sell Sanctuary Buildings, a London office block at the centre of a legal wrangle between the vendor and Bank of Ireland.
Vico Capital, the company owned by O'Donnell and his wife Mary Patricia, is asking around €210m for the property which is let to a British government department and the negotiations are around a deal which is close to this price.
That would represent a yield of around 5.5pc which is slightly higher than the 5.2pc yield recorded when Vico bought it in 2006 for £170m.
Located at 14 -26 Great Smith St, London SW1, the 21,090sqm building is let to the British Government's Department of Education and serves as its London HQ. The senior lender on the property is Morgan Stanley, with a £140m loan while Bank of Ireland is understood to have provided junior debt of £26.7m.