Two months after Malaysian pension fund KWAP U-turned on a deal, German fund manager Deka has acquired a trophy office building in London for close to €290 mln.
Two months after Malaysian pension fund KWAP U-turned on a deal, German fund manager Deka has acquired a trophy office building in London for close to €290 mln.
The property at 5 Aldermanbury Square in London's City district was bought from joint venture owners Scottish Widows Investment Partnership (SWIP) and ND Properties, part of US pension fund TIAA-CREF.
The deal comes two months after Malaysian pension fund Kumpulan Wang Persaraan (KWAP) pulled out of the acquisition of the property, for which it had agreed to pay £225 mln (EUR 362 mln) in August.
The acquisition would have been KWAP's second property investment in the City this year following the purchase of 10 Gresham Street, EC2, for £200 mln.
The asset, which was completed in 2007, comprises a rental area of around 24,400 m2 and is virtually fully let. The main tenant is Fortis Bank, with an area of 15,800 m2. Other tenants include mining group Rio Tinto, business software provider Open Link International, investment company Ginko Tree Investment and human resources group Michael Page International.
The asset was bought for Deka’s open-ended Deka-ImmobilienEuropa fund. The deal fits in with the company’s strategy of buying well-let properties in core locations. Deka will seek BREEAM sustainability certification for the property.
