Victoria Plaza sold
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Another German open-ended fund manager finally baled out of a loss-making London asset just before Christmas. CGI sold Victoria Plaza, its 234,000 sq ft redevelopment over Victoria station, SW1, to the Barclay brothers for £125m.

The building, which has been empty since completion by developer HRO two years ago, will house the Telegraph Group. The newspaper publisher, which the Barclays bought in 2004, has taken a long lease from its owner and will occupy the first and second floors, representing just over half the building. Atisreal, which advised on the move, has since been retained to market the top three floors at £45 per sq ft.

Having created an income for Victoria Plaza, sources said the Barclay brothers were likely to sell it. This cash flow could help fund Telegraph's exit from Canary Wharf, where it pays £38.50 per sq ft on 135,000 sq ft at One Canada Square.

A rent review is due in 2007 and the lease expires in 2017. Atisreal and Docklands agency Cherryman are likely to market the space at around £30 per sq ft. Savills and Cushman & Wakefield Healey & Baker advised CGI.

Edited by Julia Cahill
(Filed: 07/01/2006)