Tishman Speyer has paid below asking price for a London office asset, according to sources.
The US company closed its acquisition of The Economist Plaza in London’s West End at £125m (€161m).
Tishman Speyer declined to comment on the purchase price of the asset, which had an asking price of approximately £132.5m.
The Economist Group, which has its headquarters in the building, sold the complex and agreed to lease four floors in one its three buildings for 18 months.
Currently fully let, Tishman Speyer will add value to the 81,623 sqft asset once vacated.
Dan Nicholson, head of Tishman Speyer’s UK office, said: “The Economist Plaza is extremely well situated. We look forward to repositioning this property as a best-in-class West End office destination.”
The Economist Plaza, first developed in 1964 and refurbished in 1990, also includes residential and retail space.
The deal is Tishman Speyer’s fourth in London in two years, having bought 199 New Oxford Street last year and Sainsbury’s headquarters at 33 Holborn and The Point in Paddington in 2014.
Rob Speyer, president and chief executive at Tishman, said: “The addition of The Economist Plaza further expands our portfolio in one of the world’s great cities.
“We have a very positive view of the London commercial real estate market, and we are continuing to look for office properties there that will serve the needs of world-class corporations.”
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