German fund manager Union Investment Real Estate has taken advantage of high demand for core properties in London by disposing of the 33 Holborn office building after a 12-year holding period.
German fund manager Union Investment Real Estate has taken advantage of high demand for core properties in London by disposing of the 33 Holborn office building after a 12-year holding period.
The headquarters of Sainsbury's Supermarkets, located on the western fringe of the City of London, was sold to a consortium led by Tishman Speyer.
The parties agreed not to disclose details of the purchase price.
The nine-storey office complex with some 30,467 m2 of rental space was designed by star architect Sir Norman Foster and had been part of the portfolio of Union Investment's open-ended real estate fund Unilmmo: Europa since 2002.
'It’s not only the sale that makes 33 Holborn another chapter in our ongoing success story of investing in the London market,' said Martin Brühl, head of investment management international at Union Investment Real Estate. 'Following acquisition, the property steadily increased in value – by 7% in total – and also generated stable rental income throughout the long holding period due to being fully let,' he added.
The lease with sole occupier Sainsbury's still has 13 years to run. Union Investment intends to reinvest the sale proceeds in other locations, including UK regional city markets.
