TH Real Estate has sold One Kingdom Street, London for £292m (€344 mln) to Hong Kong investor C C Land Holdings in an off-market transaction.
The deal, which was made on behalf of the Cityhold Office Partnership (CHOP), represented a net initial yield of 4.86% and a capital value of £1,100 per ft2, according to TH Real Estate.
'The sale of One Kingdom Street is further evidence of the Cityhold Office Partnership seeking to realise performance once asset management initiatives have been successfully implemented. The venture will actively seek to reinvest the proceeds throughout 2017 – with a focus on gateway continental European cities such as Berlin, Munich, Paris and Madrid,' commented Jasper Gilbey, fund manager, Cityhold Office Partnership, TH Real Estate.
The Cityhold Office Partnership was formed in August 2015 with two of Sweden's national pension funds with a view to building a €4 bn-plus pan-European office platform. At the time, the joint venture was seeded with €2.2 bn of core office space owned by TIAA General Account and the Swedish pension funds AP1 and AP2.
The landmark office building sold by the partnership is located in Paddington Central and comprises some 264,900 ft2 (24,610 m2) of Grade A office space set over nine floors. Tenants include Vodafone, Shire, Mysis and Statoil. The weighted average unexpired lease term is 6.5 years (to breaks) and the average office passing rent is £55 per ft2.
'We are delighted to have sold One Kingdom Street. This sale marks the end of the London disposal programme having sold the Peak in Victoria in December last year for £145 mln. Efforts will now be focussed on actively managing the residual £700 mln London portfolio and selectively redeploying the capital into other London sub-markets,' concluded Peter Neal, senior portfolio manager, TH Real Estate.
Michael Elliott, JLL and Ashurst acted for TH Real Estate. C C Land Holdings was represented by Kieran D. Cotter & Co and Addleshaw Goddard.
