SL Green Sells London Asset for $100M

SL Green Realty Corp and its partner Westcore Properties have sold their shares in the Jersey Property Unit Trust, which owns a long-term leasehold interest in Procession House, a Class A office building in London to a U.K.-based property company for $100 million.

SL Green Realty Corp and its partner Westcore Properties have sold their shares in the Jersey Property Unit Trust, which owns a long-term leasehold interest in Procession House, a Class A office building in London to a U.K.-based property company for $100 million.

Located at 55 Ludgate Hill in the City of London, the 105,195-square-foot mixed-use building is located over the City Thameslink Station, a national rail station.

SL Green will receive in the neighborhood of $34.3 million in net proceeds from the completed transaction and realize an internal rate of return in excess of 20 percent on its investment.

SL Green and Westcore acquired the property’s mortgage in September 2010.  When the mortgage defaulted in June 2012, Green Loan Services L.L.C. exercised remedies and put the property into receivership.

“The sale of Procession House represents the highly successful conclusion of what was a unique investment for SL Green, outside our usual geographic focus, but certainly within our debt investment and special servicing expertise,” David Schonbraun, SL Green Realty Corp.’s co-chief investment officer, said.

Completed in 1999, Procession House was developed in conjunction with the Corporation of London in 1999 and pre-let to investment bank Goldman Sachs, who remains its major tenant with a 98,262-square-foot lease that extends to September 2024.

Jones Lang LaSalle’s London investment sales team led by Andrew Hawkins marketed the sale of the asset.