Gryphon Advise Clearbell and MS on the purchase of E14 offices - As reported on EGI

The fund manager and Morgan Stanley’s Alternative Investment Partners Real Estate division purchased the corporate entity holding 3 , 4 and 5 Harbour Exchange in London, E14, with plans to “reposition” the buildings.

The blocks, located just south of Canary Wharf and adjacent to South Quay DLR station, are circa 80% let to tenants including British American Tobacco and HSBC.

Clearbell, launched by Mountgrange Investment Management, said that the majority of tenants have lease events during the next three years, providing it with an opportunity to improve common and external areas, upgrade the accommodation, engage with tenants and relet the space.

It added that the impending arrival of Crossrail in 2017, and the continued regeneration of the Docklands, will drive tenant interest in Harbour Exchange.

Clearbell partner Rob West said: “We are delighted to acquire this asset off a sensible base price with scope to drive future value via refurbishment and leasing.

“Clearbell has deployed approaching £200m in three investments over the last few months. Given market conditions we expect our rate of capital deployment to accelerate throughout 2014.”

Catherine Hong, portfolio manager of Morgan Stanley AIP Real Estate, said: “Our investment strategy is to align with and co-invest alongside what we believe to be best-in-class real estate fund managers around the world with a specialist expertise in their local markets. As an existing limited partner of Clearbell’s fund, we are very pleased to be partnering with them in this acquisition.”

Clearbell Property Partners II Fund was launched in 2013 by the team behind Mountgrange.

Gryphon Property Partners advised Clearbell and Morgan Stanley AIP; GM Real Estate advised Land Securities.


Article by Bridget O'Connell, EGi Investment, 17th February 2014