Portuguese insurer buys former Economist HQ from Tishman Speyer

Portuguese insurer Fidelidade, majority-owned by China’s Fosun, has acquired Smithson Plaza in London, the former home of The Economist magazine.

The three-building, 81,000sqft mixed-use estate in St James in the West End of London has undergone a major refurbishment and re-letting by Tishman Speyer.

Formerly known as the Economist Plaza, it was sold by The Economist to Tishman Speyer’s value-add fund TSEV VII in 2016 after the publisher decided to leave its historic home.

Tishman Speyer then refurbished the estate in 2017 and 2018, before the leasing the vacant floors and achieving the highest rents ever in London at the time, of more than £200 (€218) per square foot.

“The entire team at Tishman Speyer is incredibly proud of what it has achieved at Smithson Plaza – a rejuvenated home to an accomplished mix of office, retail and residential tenants,” said Dan Nicholson, managing director of Tishman Speyer UK.

“We have taken our responsibility as custodians of this iconic property with the utmost seriousness and trust that our other goal – of welcoming the broader public back into the plaza – continues to stand the test of time.

“This sale marks a further milestone for Tishman Speyer in the London office market, a success story which began over 20 years ago.

“It also represents an important milestone for this particular fund, this being the last asset from this closed-ended vehicle to be sold and we are delighted to execute this exit as it substantially crystallises the performance of the fund, which is projected to successfully deliver its net target return to investors.”