Tishman Speyer snaps up London scheme for EUR 205m

US investor Tishman Speyer has acquired London's Eland House from UK REIT Land Securities for £171 mln (EUR 205 mln), reflecting a cap rate of 7.21%.

Built by Land Securities in 1995, the building sits on Bressenden Place and comprises 253,000 sq ft (23,504 m2) let to HM Government. It currently houses the Department for Communities and Local Government (DCLG) with a lease expiring in 2021 and a tenants break clause in 2016. Annual rent stands at £12.35 mln.

'Eland House does not form part of our ambitious masterplan for Victoria,' said Robert Noel, managing director of Land Secs' London Portfolio. 'The proceeds from the sale will be recycled into other opportunities within the portfolio.'

Julian Stocks, managing director, UK Tishman Speyer added: 'Eland House is a Grade A office building in a great location which will improve further as Land Securities develop their Victoria Circle Scheme.' The deal adds to Tishman's recent purchases in Frankfurt and Paris.

CBRE acted for Land Securities and Jones Lang LaSalle advised Tishman Speyer.