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NY Brokers Seal the Deal Between UK Consortium and Tokyo Company

NEW YORK CITY-Steve McCoy and Hiroshi Nagata represented Sumitomo Real Estate Sales in landing a hot London property for a rumored $145 million.

By Amy Vaughn | Updated on October 19, 2000

NEW YORK CITY-Steve McCoy and Hiroshi Nagata of Manhattan-based Sumitomo Real Estate Sales spent two years navigating the complexities of a deal to acquire the leasehold on Victoria Street’s Ashdown House in London for a British investment consortium. While fending off unsolicited bids by Arab and German companies to the owners, they sought to bring what McCoy calls the “roller coaster ride” of negotiations to a close. No one on either side of the deal would disclose the selling price, but industry insiders say it was £100 million, or at yesterday’s exchange rate, $145 million.

Shuwa Ashdown House Corp., an American-based subsidiary of Shuwa Investments Corp. of Tokyo, purchased the leasehold interest of Ashdown House in 1989. This was 100% of the subsidiaries’ share capital, McCoy explained in an exclusive interview with GlobeSt.com. Shuwa did not ever acquire the freehold interest, ownership of the land, which remains in the possession of the Church Commissioners for England. McCoy explains that this type of transaction, rare here, is common in London.

The consortium Sumitomo represents, British Ensign Estates Ltd., Allied Commercial Holdings Ltd. and Galvine Ltd., has now, as of the official closing last week, acquired Shuwa Ashdown House Corp., thereby acquiring the leasehold, McCoy reports. “Post closing, they can either own Shuwa or transfer shares,” he adds. “The London market seems to go for leasehold deals as opposed to conventional property deals.”

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