German fund manager Deka Immobilien has purchased a prime office property in the City of London for £485 mln (€574 mln) from an unnamed overseas investor.
Asset manager Hines developed the building in partnership with Network Rail and London Underground. Deka has now acquired the fully let core office building known as Cannon Place.
The property will be held under a joint venture structure between the open-ended real estate mutual funds Deka-ImmobilienGlobal and WestInvest InterSelect.
Cannon Place was completed at the end of 2011, offering 39,000 m2 leasable space in the heart of the City of London, directly above Cannon Street Station. Hines and the two Russian investors that developed the property sold their equity in the asset in 2013, although Hines retained the asset management contract.
It is leased under long-term agreements to seven tenants, with law firm CMS Cameron McKenna anchoring the building. The average weighted lease term comprises approximately 19 years.
Savills represented Deka on the acquisition, while CBRE represented the seller.
