Middle Eastern investor Wolfe Asset Management Ltd (WAML) has bought the freehold of London mixed-use asset The Peak from a fund managed by TH Real Estate for £145 mln (€171 mln) in an off-market deal.
The asset belonged to the Cityhold Office Partnership, an investment vehicle owned 50% by TIAA-CREF and 50% by funds of the Swedish National Pension platform.
'We are extremely proud to have purchased such an iconic building which perfectly fits our strategy of owning best in class office buildings in prominent central London locations', said Abdulla Al Gurg, group general manager of WAML.
The 100,000 ft2 (9,300 m2) asset, located in the Victoria district, is let to a mix of tenants including Bank of Scotland, PetroChina and Guggenheim Capital. The price paid for the JPUT in which the freehold interest sits represents a net initial yield of 4.27% and a capital value of £1,489 per sq ft.
'As long-term holders of real estate, The Peak will be a fantastic addition to WAML’s portfolio. The ongoing transformation and infrastructure improvements in Victoria will further enhance its future performance,' said James Rood & Ed Bradley of CBRE.
'We are delighted with the outcome of the sale, with the asset delivering very attractive returns for the partnership,' said Peter Neal, manager of the Cityhold Office Partnership’s UK portfolio at TH Real Estate. 'A sale crystallises these gains and provides additional capital to allocate to the Partnership’s 2017 London investment programme.'
CBRE and Taylor Wessing represented WAML.
JLL and Eversheds acted for TH Real Estate.
