International law firm Clifford Chance has advised the joint venture between property investment firm Castleforge and Malaysia’s leading property developer Gamuda Group on the acquisition of Deutsche Bank’s London HQ for redevelopment. With a project development value in excess of £1bn the acquisition represents one of the most significant transactions in the City’s history.
The Clifford Chance team advised on all aspects of the transaction including the formation of the joint venture, the acquisition financing and the acquisition of Winchester House.
Following the acquisition, a comprehensive upgrade and refurbishment plan is expected to transform Winchester House’s 320,000 sq ft space into top-quality office space, offering Grade A facilities and ESG credentials for blue-chip occupiers in a prime location. Renovations expect to be completed by 2027 and potential occupiers are already in discussion to lease office space in the building.
Alis Pay, Real Estate Partner and Co-Head of the Global Real Estate Sector who led the deal commented: “It was a pleasure to work with Castleforge and Gamuda on this landmark transaction in the London office market. We brought together our market leading real estate, corporate real estate, real estate finance, property litigation and tax capabilities to provide a team who could holistically advise on all aspects of the transaction. The transaction is an example of a growing trend of redeveloping existing properties into greener more sustainable buildings with the credentials to match.”
Michael Kovacs, Founding Partner of Castleforge said: “Winchester House is a landmark acquisition for Castleforge and the City. Working with Gamuda, we are confident that we will see this space transformed to trailblaze a new class of amenity rich and sustainable offices in the area.
“This is a very exciting development not just for us but for potential future tenants looking to collaborate in the best office space available, right in the heart of London. Doing so makes for better business and helps firms meet their ESG targets. We look forward to progressing to the next stage of planning for this prime location.”
Chu Wai Lune, Chief Executive Officer of Gamuda Land said: “The acquisition of Winchester House is a strategic opportunity which is part of our Quick Turnaround Project (QTP) portfolio as we further expand our property development investment in the UK.
This urban regeneration project is a compelling undertaking in a highly sought-after location in Central London. With the aim to achieve the highest level of ESG accreditations (BREEAM Outstanding); Winchester House will make a mark in the growing demand for Grade A ESG office.”
The Clifford Chance deal team was led by Real Estate Partner and Co-Head of Global Real Estate Sector Alis Pay. Alis was supported by Senior Associates Matt Thomson, Gabrielle Coppack, Associate Marija Stavric and Director Ben Hatton on the acquisition, Real Estate Partner Matt Taylor supported by Senior Associate Alice Raine and Associate Manuel Ponces Magalhães advised on the joint venture and Real Estate Finance Partner Claire Fawcett supported by Associates Marco Wong and Aldo Schiavo advised on the acquisition financing. Head of Real Estate Tax David Saleh and Director of Tax Edward Page advised on the tax elements of the transaction.
