Arab investors buy London's highest tower development

German capital investment company Union Investment Real Estate has sold London's highest proposed development - the Bishopsgate tower - to the Pinnacle Ltd, an offshore investment vehicle sponsored by Arab Investments. The financial details of this transaction have been kept confidential by the two companies but some media outlets suggested the price paid was around £200 mln.

The 288-metre and 60-storey tower will provide a gross lettable area of some 90,000 m². Its value is estimated at £1 bn. The skyscraper, which will be re-named The Pinnacle, will include some 47 floors of offices and three levels of retail in the base. Preliminary construction work for the building, which has already got consent from the City of London, is scheduled to commence over the next few weeks, Union Investment said.

The investment group, which was advised by Savills, said it began talks with potential bidders in October 2006, as it knew it would need strong funding partners to realise a project of this scale. Union Investment RE's Frank Billand said: 'Union Investment will continue to have an ongoing commitment to the London market, and will look at other investment opportunities in the future.'

Union Investment has a portfolio of seven office and hotel properties in the City of London. The company changed its name in January 2007 from DIFA 'to reflect the growing integration of its capital and property market related activities.'