AEW Europe's EUR 800 mln Episo fund has made its fifth investment with the acquisition of an office property in the City of London for £67 mln (EUR 71.6 mln). The long leasehold interest in City Place House, a core City of London building, was purchased from Prupim for a Net Initial Yield in excess of 10% and a capital value of £365 per sq ft. This is the fund's second transaction with UK asset manager Prupim after previously acquiring a diversified retail, office and logistics portfolio in the UK with Mountgrange Investment Management last year.
AEW Europe's EUR 800 mln Episo fund has made its fifth investment with the acquisition of an office property in the City of London for £67 mln (EUR 71.6 mln). The long leasehold interest in City Place House, a core City of London building, was purchased from Prupim for a Net Initial Yield in excess of 10% and a capital value of £365 per sq ft. This is the fund's second transaction with UK asset manager Prupim after previously acquiring a diversified retail, office and logistics portfolio in the UK with Mountgrange Investment Management last year.
'I believe that our recent transaction with Prupim provided them with confidence in our ability to perform during very uncertain times. The deal wouldn’t have happened without this sense of trust,' commented Rob Reiskin, Head of Investments in Europe for AEW Europe.
The asset is located in the core of the City and was developed in 1991. Currently fully let to eight tenants including Prupim and Cleary Gottlieb, the weighted average lease term remaining is in excess of seven years.
'The quality and pricing of this asset made it a compelling purchase for the fund,' said Ric Lewis, Chief Investment Officer for AEW Europe. This purchase further confirms AEW's commitment to its strategy of capitalising on the opportunities that currently exist in the critical target market of the UK.
