TIAA Henderson Real Estate is to invest £165.8m (€211.8m) in a London office property.

The investor has agreed to buy the leasehold interest in a fully let property in London’s City district from Great Portland Estates, which announced the sale.

The sale reflects a 4.5% yield – in line with current office yields in the UK capital.

The property is under development, with completion scheduled for the end of next year.

TH Real Estate has agreed to pay £92.8m for the site, as well as take on the cost of completing the 142,500sqft project.

Great Portland said a 20-year lease had been agreed with law firm Bird & Bird.

London’s City district has seen several deals close in recent weeks.

IVG Immobilien’s Gherkin tower in London was this week sold to Brazilian group Safra for more than £700m.

Last month, Norges Bank Investment Management bought The Bank of America Merrill Lynch complex for around £582.5m from sovereign wealth fund GIC.

London is attracting more capital than New York’s Manhattan island, according to analysis by research firm Real Capital Analytics.

In the 12 months to the end of September, the UK capital attracted four times more capital, RCA said.