AXA Real Estate has confirmed it has acquired the former Pinnacle site in the City of London on behalf of an international consortium of investors in an all-equity transaction.
AXA Real Estate has confirmed it has acquired the former Pinnacle site in the City of London on behalf of an international consortium of investors in an all-equity transaction.
Financial details were not disclosed, but the Financial Times has put the purchase price at around £300 mln (€407 mln). AXA declined to identify the investors behind the deal, one of whom is quoted by the FT as being Singapore’s Temasek Holdings. The site was acquired from investment vehicle Pinnacle No 1 Limited.
AXA RE said it will develop a new building at the site, which is located at 22 Bishopsgate, London EC2 near Liverpool Street Station, with developer Lipton Rogers.
The new tower will provide over 1 million sq ft of prime offices, including retail as well as restaurant and bar space.
A planning application for the new 22 Bishopsgate tower will be submitted within the next few months. Construction is expected to commence by the end of 2015 with completion scheduled for the end of 2018.
AXA Real Estate, on behalf of the investors’ consortium, was advised by JLL on the transaction. CBRE acted for Pinnacle No 1 Limited.
Anne Kavanagh, global head of asset management and transactions at AXA Real Estate, commented: ‘The acquisition of 22 Bishopsgate represents a significant opportunity to purchase a prime office development site at one of the most desirable office locations in the City of London.
‘The project has enormous potential and we believe that the combination of AXA Real Estate’s strong track record of development in London and internationally, together with the long term prospects of London as a world leading city and international finance centre, present a compelling investment opportunity.’