US-based private equity firm Madison International Realty has acquired a minority stake in London’s Salesforce Tower, through a Jersey Property Unit Trust (JPUT), joining other investors including Heron International.
Although financial details were not disclosed, the UK press reported that Madison is paying £195 mln (€227 mln) for a 25% stake in the 230-metre-high tower.
The stake is believed to have been sold by the Saudi Prince Abdul Aziz bin Fahd.
Completed in 2011 at 110 Bishopsgate, the tower is an island site in the City of London and provides 441,000 sq ft (40,970 m2) of office space over 37 floors. The property is over 93% let to a range of tenants, the largest of which is Salesforce.
The building has a BREEAM ‘Excellent’ rating for design.
In January 2021, an ING-led syndicate of lenders completed a £400 mln, five-year refinancing of the Tower.
‘This acquisition has allowed us to secure a stake in a prominent London office building, which we believe delivers space that meets the demands of modern occupiers looking for world class offices in one of the world’s leading financial centres,’ said Alex Lukesch, managing director at Madison International Realty.
‘The investment reflects our conviction in the ongoing resilience of the office sector and the role we believe it will play post pandemic. We have observed that demand for quality, well located space remains robust, while companies are increasingly looking for properties that also have strong ESG credentials to help meet their own sustainability targets. In Heron we believe we have an experienced and highly regarded partner and we look forward to working with them on this venture.’
