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Burlington Arcade sold to Khalili

Tom Stevenson
Friday 07 October 1994 18:02 EDT
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THE Prudential confirmed yesterday that it had found a buyer for the Burlington Arcade in London's West End at a price confirming its view that a foreign investor would pay top dollar for a perceived trophy site, writes Tom Stevenson.

The buyer is understood to be David Khalili, the colourful Middle Eastern businessman who came under fire recently for allegedly trying to buy tax-efficient property enterprise trusts on the cheap.

Mark Barnwell of Hillier Parker, the Pru's agent, confirmed that Dr Khalili's private property company, Favermead, had been chosen from a number of bids for the luxury covered shopping street off Piccadilly.

At an estimated pounds 45m, the deal represented a yield of a little over 4 per cent, a high price for the pounds 2m of rental income from the 37,000 sq ft site.

John Weymouth, of the Prudential, said the view had been taken in June that the Grade II listed arcade, which it had owned for 40 years, would be worth more to another buyer given the amount of overseas money looking for property in London.

Dr Khalili, who owns a 20,000- piece Islamic art collection worth an estimated pounds 1bn, recently raised more than pounds 100m from the disposals of an Edinburgh shopping centre and a portfolio of industrial properties.

Earlier this year he tried to persuade the 3,000 shareholders of seven property enterprise trusts to sell a portfolio of industrial and residential properties at well below their original cost.

(Photograph omitted)

QCATCH:BROV8

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