HIH Global Invest has acquired an office property in London from German open-ended property fund Degi International for £110 mln (about EUR 124 mln).

HIH Global Invest has acquired an office property in London from German open-ended property fund Degi International for £110 mln (about EUR 124 mln).

This is the second purchase of a core property in London by the subsidiary of HIH Hamburgische Immobilien Handlung within the space of a few months. HIH acquired the Grade A property, 100 New Bridge Street, on behalf of an institutional investor. HIH will assume the long-term asset management.

Located in the western part of the City of London, 100 New Bridge Street comprises 15,540 of gross lettable space.

The office floor space is fully let through 2023 to the globally active solicitors of Baker & McKenzie, implying that 95% of the total rental income is secured long-term. Other tenants of the building include Boots and Pret a Manger.

The building has served as Baker & McKenzie's headquarters since its completion in 1992.

Andreas Schultz, CEO of HIH Global Invest, commented: 'Despite the resurging sales prices for core properties in London during recent months, we were able to secure this investment on a yield level that significantly exceeds the mean long-term value. We expect prices for high-end properties with long-term leases in place to keep rising. Both aspects commend this commitment and our good timing.'