IRISH PROPERTY fund D2 Private has sold a property in the west end of London to a Malaysian sovereign wealth fund, netting a substantial gain in the process.
The company, which is run by developer David Arnold and financier Deirdre Foley, sold 11-12 St James’s Square late last week for £150 million to Malaysia Employees Property Fund.
It had been marketed by estate agent Jones Lang LaSalle with a guide price of £157 million.
D2 bought the property in 2006 for about £65 million, originally in a joint venture with GE Capital Real Estate and JER Partners.
It also spent about £25 million refurbishing the listed Georgian building.
It is understood that GE and JER exited the deal, leaving it in the hands of Irish investors.
In 2007, D2 achieved a world record for office rents by letting the top two floors of the building for up to £140 per square foot to fund manager Permal Investment Management Services Ltd.
In total, the building comprises eight floors and 81,842 sq ft of office space. Tenants include auctioneer Christie’s and the Dubai International Finance Centre.
The refurbishment included the creation of a large atrium with a relief on the wall that depicted Kerry, Arnold’s home county.
D2 Private was set up by Mr Arnold and Ms Foley in 2005. It has a portfolio of projects in Ireland and the UK valued at £1.4 billion.
These include office developments in Saville Row in London; and Number One, Central Park in Leopardstown, and Warrington Place in central Dublin.
About six weeks ago, Bank of Scotland (Ireland) appointed Michael McAteer of Grant Thornton as receiver to D2 Property Management Ltd, a wholly-owned subsidiary of D2 Private Ltd, which was not affected by the move.
Latest accounts filed for that company, which were for 2008, show it had a £10.1 million loan with Bank of Scotland (Ireland) that was due to be repaid in 2010.
D2 Property Management’s main investments were in Victoria SA, an entity involved in the £175 million purchase of 1-19 Victoria Street in London, and the Scott Portfolio Unit Trust, which itself was placed into receivership with Grant Thornton.
