TH acquires emergency agency HQ in London for €125m

TH Real Estate has completed the £90 mln (€125 mln), off-market acquisition of 169 Union Street in the Southwark district of central London.

The 120,000 sq ft (11,150 m2) property is the headquarters for London Fire and Emergency Planning Authority (LEFPA) and has been acquired on behalf of the Henderson UK Property OEIC. The vendor was from Zeno Capital, advised by Oxygen Asset Management.

The investment volume reflects a net initial yield of 5%.

The asset, which boasts a 12-year lease, comprises an island site office building, that was originally built as the Royal Mail’s parcel sorting office in 1905.

The Henderson UK Property OEIC has invested over £450 mln of assets over the course of 2015 to date, including Tower Retail Park in Crayford and Dalton Park Outlet Mall in Durham. This year, the fund has also added to its London office portfolio, with acquisitions in Bermondsey Square and Bunhill Row. The fund is currently valued at over £3.6 bn.

Marcus Langlands Pearce, co-manager of the Henderson UK Property OEIC, commented: 'Southwark is well positioned for significant rental growth, as demand is now considerably outstripping supply, meaning that available space is now the lowest across all Central London office sub markets.'