LONDON-Barwa Real Estate QSC, based in Qatar, has purchased the site of the proposed 310,000-square-foot Park House develpoment at 453 Oxford St. here for $370 million. Construction started in May on the speculative retail, office and residential project, and it is expected to be complete by November 2012.
Barwa is paying the cost for the site, all construction fees and a profit share on completion, the share estimated to be about $48.7 million and capped at $73.8 million. Locally-based Land Securities, the seller, will act as development manager for the project. CB Richard Ellis advised the buyer in the transaction.
Robert Noel, managing director of Land Securities, said the sale enables the company to realize a majority of profit ahead of schedule, with significantly reduced risk and no capital employed. "We will recycle the capital to invest into our growing speculative development pipeline targeting the further return opportunities offered to our shareholders through early delivery into a forecast supply-constrained market."
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