Cornerstone Real Estate Advisers Europe has acquired Nexus Place in London from US developer Tishman Speyer.
Cornerstone Real Estate Advisers Europe has acquired Nexus Place in London from US developer Tishman Speyer.
The property at 25 Farringdon Street in London was purchased for £128 mln (€153 mln) at a yield of around 5.14%.
The acquisition, which follows shortly after Cornerstone Europe’s £94 mln purchase of 40 Gracechurch Street, is the second and largest acquisition undertaken by the company as part of a new Central London office investment mandate from a separate-account client.
Tishman Speyer bought Nexus Place in 2007 and redeveloped the building, adding four new storeys and 50,000 sq ft (4,650 m2) to the property, which is located on the east side of Farringdon Street in the City of London.
Tishman Speyer let the building to 10 tenants, including Baker Tilly, Kroll and Johnson Matthey, and it now generates an annual rental income of £6.7 mln with an average weighted unexpired lease term of 10.25 years.
The building provides 14,850 m2 of Grade A office and ancillary retail space with a BREEAM Very Good rating achieved following Tishman Speyer’s redevelopment.
GM Real Estate advised Cornerstone; Jones Lang LaSalle and Hall Kemp acted for the vendor.
Darren Hutchinson, director fund management at Cornerstone Europe said: 'This transaction, which included the assumption of the existing debt package, illustrates Cornerstone Europe’s ability to source and close complex acquisitions.'
Dan Nicholson, head of UK acquisitions and asset management at Tishman Speyer, said, 'The sale of the property to Cornerstone completes our recycling of the building, and we look forward to reinvesting the proceeds into the central London market.'
