Spanish investor buys Facebook London HQ for $94 mln
LONDON Aug 9 (Reuters) - Spanish property company Allegra European Holdings has exchanged contracts to buy a block containing the London headquarters of social network company Facebook for about 60 million pounds ($93.8 million), a source close to the deal told Reuters.
Facebook recently moved into the Grade II listed 19th century block known as Seven Dials Warehouse, located in the Covent Garden tourist hot spot, which also houses a restaurant and an Urban Outfitters store.
Southern European investors are attracted to the London property market for its safe haven qualities and liquidity as well as the appeal of an investment in sterling.
Allegra has previously bought London property, including an office block on King William Street in London's main financial district. Allegra could not be immediately reached for comment.
According to the sales brochure, the property is held in a Luxembourg-based special purpose vehicle, and Facebook sub-leases its office space from the Expedia.com website, paying an annual rent in the region of two million pounds.
The block's total rent is about 3.6 million pounds and the deal would represent a rental yield of about 5.5 percent.
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