Brookfield Property Partners has joined with China Life Insurance Company to acquire the Aldgate Tower in the City of London from Starwood Capital-backed Aldgate Tower Investments for £346 mln (€445 mln).
The purchase price represents a net initial yield of 4.9%.
Aldgate Tower is an iconic, Wilkinson Eyre-designed building which was completed in 2015 and symbolises the wider regeneration of the Aldgate area. Adjacent to a new public park, it comprises 30,200 m2 over 17 storeys and is 94% let to tenants including Aecom, Uber, WeWork, Tag, Ince & Co and Maersk, with just two 930 m2 units still vacant.
Brookfield will be responsible for asset management of the building, including leasing.
Cushman & Wakefield advised the vendor on the deal.
'The acquisition of Aldgate Tower reflects Brookfield’s commitment to London as a leading global centre for business,' said Martin Jepson, President and COO of Brookfield’s UK Office Division. 'The pace at which the building was let is a testament to the quality of the space. We look forward to working with China Life to further position Aldgate Tower as a leading commercial development.'
Aldgate Tower is China Life's third commercial property investment in London.
