Long leasehold of 82-bed student accommodation building sold following regear
The Council of Lutheran Churches, advised by Gerald Eve, has sold the long leasehold interest in its central student accommodation centre to Scape Student Living for in excess of £17 million.
30 Thanet Street in St Pancras, home of the International Lutheran Centre, is an 82-bed student accommodation block with significant reconfiguration potential and was sold following a regear of the long lease the Council held on the property.
The regear negotiations, also led by Gerald Eve, removed restrictive user and alienation clauses, unlocking value and positioning the property for sale. All advice and negotiation was undertaken in compliance with The Charities Act 2011.
William Ray, partner at Gerald Eve, said: “For charities with holdings such as 30 Thanet Street, the challenges are to identify where the value lies and the best way of unlocking it, while ensuring compliance with The Charities Act. By regearing the long lease with the freeholder – itself a charity – and then disposing of the asset, the Council of Lutheran Churches has realised a significant level of capital that it can now put to better use in its wider charitable mission.”
Following the sale of the long leasehold, the Council is considering its options for a new location for the International Lutheran Centre.
Gerald Eve advised the Council on the regear and the sale.