Tiffany & Co. Sells London Real Estate

Enjoying a strong real estate market, Tiffany & Co. has sold the building housing its flagship store in London for £73 million ($149 million) and has simultaneously entered into a 15-year lease with two 10-year renewal options.

Tiffany had acquired the building at 25 Old Bond Street and an adjoining building at 15 Albermarle Street in 2002 for $43 million (U.S. dollar equivalent at the acquisition date). The acquisition was made in order to combine the buildings, renovate and reconfigure the interior retail selling space.

That work was completed in 2006, allowing the company to complete this sale and leaseback as planned.

This transaction results in a deferred, pretax gain of approximately $73 million, which will be amortized in selling, general and administrative expenses over a 15-year period, and is not expected to have a significant effect on future earnings. The company plans to use the proceeds from the sale for general corporate purposes.

BT pension scheme to sell UK real estate investments

A spokesman for Hermes Pensions Management Ltd said stakes in 10 real estate funds would be divested in order to part-finance around 700 million pounds for an international real estate investment programme.

"Hermes commenced an overseas investment programme at the end of last year in anticipation of relative outperformance of international real estate markets compared to the UK market," the spokesman said.

London's Most Expensive Flats

There's no denying that London is Europe's real estate capital of eye-watering cost.

And rightly so. Though America's property market is being shaken by the current lending crisis, London's so-called super-prime property arena, made up primarily of high-end, high-cost flats, is skyrocketing.

From wealthy bankers in London's financial district to old-money aristocrats, the range of buyers reaches far and wide. But a growing international clientele, in particular, is helping drive up prices. They're attracted by London's favorable tax system (foreign residents are taxed only on their overseas earnings), fashionable schools and good living. Of the 19 billionaires living in London, only 11 are British citizens.

London's Real Property Draws Saudi Interest

Fifty Saudi investors have already bought 132 plots in the project, he added.

The marketing of the project in the Kingdom is expected to be completed in a short period.

The real estate investment in London will also be profitable because of the tax breaks and other features offered by the British government, he further said.

AMB Property Acquires Industrial Development Project In UK

AMB East London Distribution Park is a 320,000 square foot two-building development project located adjacent to a major highway that connects Central London to the M25, London's Orbital. Guy Jaquier, AMB's president, Europe & Asia, said, "Our expansion to the United Kingdom further establishes AMB as a major provider of industrial distribution space in strategic markets integral to global trade. AMB has entered the UK with a high-quality development property designed to provide our customers with superior functionality and modern specifications in the high-demand Greater London area."

New Star launches property hedge fund with $50 mln

LONDON, Oct 1 (Reuters) - British fund firm New Star Asset Management said on Monday it had equity commitments of $50 million and that it wanted to raise up to $400 million for its new real estate hedge fund. The New Star Real Estate Hedge Fund Limited, announced in July and launched on Monday, will be managed by Robin White -- formerly of Rock Capital -- and will invest mainly in European listed property securities such as real estate investment trusts REITs).