Swedish real estate investor Cityhold has carried out its third transaction in London this year with the acquisition of The Peak freehold office property.
Swedish real estate investor Cityhold has carried out its third transaction in London this year with the acquisition of The Peak freehold office property.
The investment volume was not disclosed but Property Week put it at £115 mln (EUR 140 mln), reflecting a 5% yield.
The vendor was a joint venture between Heron International, the Co-operative Insurance Society and AXA Real Estate Investment Managers. Jones Lang LaSalle acted as Cityhold’s advisor in the acquisition. The vendors were represented by CBRE.
The Peak comprises 9,300 m2 of office space and is located at 5 Wilton Road, Victoria, SW1. The tenants of the BREEAM 'very good' rated property include G4S, PetroChina, Bank of Scotland, GuggenheimPartners, Global Infrastructure Partners, The Gatsby Foundation, Wates Construction and Reed Executive. Completed in late 2009, the property provides an average unexpired lease term of over nine years.
During the summer Cityhold purchased 40 Holborn Viaduct in central London for EUR 175 mln, following on from its debut acquisition of the freehold office building at 1 Kingdom Street in Paddington for EUR 278 mln in January.
'Following on from our recent midtown acquisition, and Paddington, we are pleased to have acquired in another key London transport hub, which we feel has excellent communication links and potential for growth. The property itself has been developed to a very high standard, along with having a strong tenant base and ticks all the boxes when it comes to our investment criteria,' said Cityhold CEO Per Sjöberg.
Cityhold is a 50:50 joint venture between the First and Second Swedish National Pension Funds.
