German fund manager Union Investment Real Estate has acquired The Copyright Building in London's West End from UK REIT Derwent London.
The investment volume comes to £165 mln (€188 mln), or £148.7 mln net of top-ups relating to rent free periods and a rent guarantee on the vacant retail space.
The Copyright Building office complex is located at 30 Berners Street in London. The seven-storey property comprises around 10,000 m2 of rental space and is situated in the fast-growing district of Fitzrovia. The office space is let in full for a fixed term of 20 years to Capita Business Services , an IT service provider in the field of process management.
'As a global real estate investment manager, we continue to regard London as one of our key target markets within Europe. As in other markets, against the backdrop of the ongoing Brexit negotiations we are currently required to perform a particularly thorough risk analysis and consider a range of factors in the UK,' said Martin Brühl, chief investment officer. 'But the acquisition of The Copyright Building is a prime example of how we are continuing to systematically harness our scope for investment.'
Union Investment plans to let the ground floor and lower ground floor areas to three retailers in order to strengthen the urban character of the surrounding area.
The property is being acquired for the portfolio of the UniImmo: Europa open-ended property fund. The commercial handover of this grade A building is scheduled for October 2017.
Due to its high sustainability standards, the building is set to receive BREEAM Excellent certification. With ceiling heights of up to 2.9 metres, the individual storeys offer considerable flexibility in terms of usage. As an architectural highlight, The Copyright Building also boasts spacious terrace areas on the fourth and seventh floors with stunning views of London's West End.
Union Investment currently manages eight commercial properties in the UK, including three grade A properties in London. The Hamburg-based property investment management company acquired an interest in London's Watermark Place office complex with a rental area of 50,500 m2 in 2015. This was followed in 2016 by the acquisition of the XYZ Building in Manchester with a rental area of 14,600 m2, which was also in the project development stage.
