US private equity group Blackstone has agreed to purchase an office tower near the Bank of England in the City of London financial district from Brookfield Property Partners for £320 mln (€404 mln).

US private equity group Blackstone has agreed to purchase an office tower near the Bank of England in the City of London financial district from Brookfield Property Partners for £320 mln (€404 mln).

The 330,000 sq ft (30,657 m2) building at 125 Old Broad Street is let to tenants including broker DTZ and law firms King & Spalding and Gide Loyrette Nouel.

'This is our second investment in London this year within our core-plus strategy,' said Ken Caplan, head of European real estate at Blackstone. We continue to believe strongly in London.'

The purchase follows Blackstone’s acquisition of Alban Gate in the City from the Carlyle Group for around €380 mln earlier this month.

Brookfield acquired an initial 50% equity stake in 125 Old Broad Street as part of the acquisition of office assets from Hammerson in June 2012.

In October 2013, Brookfield took full control of the development with the purchase of the remaining 50% from a joint venture of GE Real Estate and Kennedy Wilson.

Martin Jepson, president and chief operating officer and Brookfield Property Partners’ European office division, said: 'The proceeds of this sale will be reinvested into our significant City development programme now well underway.'