German asset manager Union Investment Real Estate has made its second investment in the UK capital this year with the purchase of DLA Piper's head office in the City of London for around €245 mln.
Union Investment purchased the nine-storey complex at 160 Aldersgate Street in the Farringdon submarket on behalf of its Unilmmo: Deutschland open-ended property fund. The vendor is Greyhound Investing Corporation.
Constructed in 1990, the building is located on the north-western side of financial district and provides 19,000 m2 of space. The asset underwent an extensive redevelopment in 2016/2017 led by Castleforge Partners as asset / development manager. It is fully let to international law firm DLA Piper on a 20-year fixed lease and boasts an Excellent rating under BREEAM energy-efficiency standards.
‘The 160 Aldersgate Street property is the second office building of its size that we have acquired in London this year. In both cases, we are investing in excellent locations where we see further development potential due to the dynamic local environment,’ said Martin Schellein, head of Investment Management Europe at Union Investment Real Estate. ‘Long-term leases also fulfil what is currently the most important condition of our conservative investment approach to the UK real estate markets.’
Castleforge Partners, acting on behalf of Greyhound Investing Corporation, was advised by GM Real Estate. Union Investment was advised by Savills.
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