A fund operated by RREEF, the property arm of Deutsche Bank, has acquired the 'Equitable House' office in the City of London for approximately EUR 40mln from the British financial and insurance company Prudential. The transaction reflects a net yield of 6.7%.
A fund operated by RREEF, the property arm of Deutsche Bank, has acquired the 'Equitable House' office in the City of London for approximately EUR 40mln from the British financial and insurance company Prudential. The transaction reflects a net yield of 6.7%.
Completed in 1999, the property offers 3,500 m2 of high-quality office space and 850 m2 of retail accommodation. The office space is mostly let to US energy firm Entergy Enterprises, while the retail part is let to book retailer Borders until 2014 and to Fuller Smith through 2019 for a total annual rent of EUR 2.7mln. RREEF said that the next renting adjustment regarding the office section of the building will take place in December 2009.
'This acquisition shows that London's property market is now offering good opportunities again', said Holger Naumann, CEO of RREEF Germany. The building is earmarked for RReef-Spezialfonds, Eschborn, a special fund for institutional investors.
