Lord Sugar has hit the jackpot following the sale of a prime location Mayfair office block he bought just five years ago. The Apprentice supremo has reportedly made close to a £50 million profit on 2 Harewood Place after receiving an offer he couldn’t refuse from a Hong Kong based investor.
The recently refurbished property was bought by Sugar’s privately owned real estate company, Amsprop Estates, for £31 million in 2008. It has now been sold for £80 million as the wave of overseas investment in the capital continues to drive prices upwards.
A West End investment agent told the Evening Standard that Asian investors have billions of pounds at their disposal and they’re not afraid of spending big on prime London property.
“They believe that even if they are paying a high price, it is worth it for the capital growth they will get from buildings in the West End,” he said.
The buyer is committed to assembling a strong London portfolio and has already invested heavily in the West End. It is understood that Amsprop was not actively seeking to sell 2 Harewood Place but could not turn down the opportunity of making such a huge profit in so short a time.
The West End market is becoming extremely competitive as the supply of prime property dwindles, resulting in falling turnover. According to estimates, last month £212 million worth of West End property was placed on the market. In April 2012 the figure was £248 million.
Amsprop was founded in 1985 and has an extensive portfolio focusing on prime Central London and City freehold property. Tenants include Barclays, HSBC, Iceland and McDonalds.
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