Irish group buys Kensington property for €15m

A group of Irish investors is set to pay €15 million for a property in a high-profile London borough.

Fifteen private clients of Goodbody Stockbrokers have agreed to pay £10 million sterling (€15 million) for a property at 94-96 Kensington High Street in central London.

Goodbody arranged the deal. Its clients have put up €6 million of their own equity and borrowing the balance. AIB corporate banking is providing the finance.

Under the deal's terms, the 15 investors will co-own the property while Goodbody will manage the investment on their behalf.

The 761sq m property has one tenant, a branch of HSBC bank, whose lease has 15 years to run. The lease allows for an "upwards only" rent review every five years.

Currently the building is delivering a net yield of 3.8 per cent, but this is expected to increase to 4.3 per cent after the next rent review.

Kensington is one of the British capital's most expensive addresses. It is also known for its shopping and draws high numbers of tourists.

The purchase is further evidence of an ongoing trend in Irish private client investments of including properties like this - in notable locations at home and abroad - alongside equities and other assets.

Meanwhile, Anglo Irish Bank revealed yesterday that it funded the purchase by a group of its international clients of a €33 million property in the US city of Boston.

The bank's clients have bought a shopping and residential complex at 201 Newbury Street in Boston for $42.625 million (€33 million). The building is in one of the city's key commercial and entertainment districts.

The 130-year-old structure which was originally built as a school, but was converted 21 years ago to house shops and condominiums.

It includes 2,300sq m of retail space, over 90 per cent of which is let to fashion stores such as Gap, American Eagle and Betsy Johnson.

The bank said yesterday that it "sourced, acquired and financed" the deal on behalf of international private clients.

Tony Campbell, president and chief executive of Anglo Irish Bank, North America, described them as long-standing clients.

"We have worked with them on a number of similar high-profile transactions, and they have an outstanding track record with us," Mr Campbell added.