Deka Immobilien has bought a major South Bank freehold office in London from Royal London Asset Management and Malory Clifford's Blackfriars Investments.
Deka Immobilien has bought a major South Bank freehold office in London from Royal London Asset Management and Malory Clifford's Blackfriars Investments.
The German fund manager said it paid £275 mln (€337 mln) for Palestra, a fully leased office which will be added to its European open-ended property fund. The deal is believed to reflect a yield of 5.2%
The asset was developed in 2006 and provides 27,600 m2 of space fully let to the publicly-owned Transport for London (TFL), which uses it as its headquarters. The building is let for over 20 years and generates an annual rent of £12 mln. It also boasts a BREEAM sustainability certificate.
DTZ formally launched the sale process for the scheme in June last year.
Deka has been one of the largest buyers in the UK capital in the recent past. Earlier this week, the investor announced the €290 mln acquisition of a property at 5 Aldermanbury Square in London's City district from joint venture owners Scottish Widows Investment Partnership (SWIP) and ND Properties, part of US pension fund TIAA-CREF.
That deal came 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 (€362 mln) in August.
