A deal has been taken by a property fund to buy a portfolio of lucrative city centre property development sites. The deal would be done with the Royal Bank of Scotland that could be worth 1 billion pounds once it is completed. The portfolio includes some of the most impressive property development sites in Britain. The portfolio has been thought to be acquired by Morgan Stanley Real Estate Fund. 

Drapers Gardens is an important member of the portfolio. It is a 28-storey building in London, planned by Richard Seifert. He was the architect of Centre Point Tower in London’s West End.  It was built in the year 1967. The Drapers Gardens is loved and loathed in the same breath. But, the Drapers Gardens hasn’t been listed despite the best effort of the Twentieth Century Society. There are plans to pull down the building and make a glitzy new office project.

Aldgate Union in London is another development site in the portfolio. John Wallace, who led the Royal Bank of Scotland’s development arm, would transfer to Morgan Stanley Real Estate Fund, so that they could head a  wholly owned development subsidiary that’s called Omega Land.

Brian Carr said that they would be elated to see Omega Land expanding its platform. During last year, the company led the takeover of Canary Wharf, that is the docklands developer. After some time, it got a minority stake in Great Portland from Liberty International. Some of the recent deals include the acquisition of the Drake Circus shopping center in Plymouth and Executive Offices Group.

Carr said that they like the fundamentals of Britains property market now, and would continue to look for similar kinds of deals. He further said that land transactions are not easy to finance but they are in a position to have a look on those risks and write big equity cheques. Morgan Stanley Real Estate Fund 5, provided the equity for the deal.