New York and Toronto stock exchange-listed Brookfield Property Partners has completed a joint venture agreement with Italian asset manager Antirion SGR for its prime London asset, Principal Place.
Antirion is acquiring a 50% stake in the office and retail portion of the development based on a total valuation of £763 mln (€886 mln), representing a net initial yield of 4%. Principal Place, a new 621,000 ft2 (58,000 m2) office building on the border of Shoreditch and the City of London, is part of a mixed use complex which will also feature a 50-storey residential tower, 20,000 ft2 (1860 m2) of retail and a half-acre central piazza.
'Diversifying our investment portfolio into a primary foreign market such as London has been a strategic priority for Antirion in the last couple of years,' commented Giorgio Pieralli, Antirion SGR CEO. 'Principal Place, with its unique features and huge potential, represents an opportunity that perfectly matches our needs and expectations. We believe that the joint venture with Brookfield will lead to a new and successful step in creating value for our investors.'
Amazon UK will take occupation from summer 2017.
'Brookfield continues to see healthy demand from investment partners in core, stabilized office properties in major markets, and took this opportunity to bring Antirion into London as part of our ongoing capital recycling initiative. We are committed to completing this development in the next few months with our new partner in Antirion,' concluded Martin Jepson, president and chief operating officer, Brookfield Property Partners UK office division.
