Rothesay Insurance Company Expresses Interest in O2's Ground Lease Agreement Negotiation
Rothesay, the UK's foremost pensions insurance specialist, has entered the fold in the competitive race to acquire the 999-year lease of the renowned O2 entertainment venue in London. Sources familiar with the matter have informed our publication that Rothesay, which manages over £70 billion in assets, is among the bidders for the long-term income stream generated by the arena in North Greenwich.
Alongside Rothesay, the Universities Superannuation Scheme (USS) has also emerged as a participant in the acquisition process, which is being orchestrated by Eastdil, a leading real estate-focused investment bank. A modest cohort of undisclosed bidders is also involved. At this juncture, no party has secured exclusivity, although it is suggested that such an arrangement could be imminent.
In 2009, Trinity College, Cambridge, acquired the site for approximately £24 million and has since been the owner of the O2 lease. The venue, which once struggled to shake off its 'white elephant' label following its disappointing debut as the Millennium Dome in 2000, has since evolved into one of the world's premier entertainment establishments. Operated by Anschutz Entertainment Group (AEG), the O2 has entertained audiences with a diverse array of music, theatrical, and sporting events for close to a quarter of a century.
Trinity College procured the lease from Lend Lease and Quintain, the property companies that took control of the Millennium Dome site in 2002. The O2 auction has been underway for several months, with our publication previously reporting that the lease was being put up for sale by Trinity College.
A spokesperson for Rothesay declined to comment on the matter.
Rothesay, having managed over £70 billion in assets, is not only involved in the bidding process for the long-term income stream of the O2 entertainment venue but is also reportedly competing with other business entities, such as the Universities Superannuation Scheme (USS), in the realm of finance and investing on real-estate ventures. It remains unclear, however, which bidder might secure exclusivity for this lucrative 999-year lease, as the acquisition process is being overseen by Eastdil, a prominent real estate-focused investment bank.
