Union Investment buys London office development for €186m

German fund manager Union Investment has bought a London office development from local developer Derwent for €186m.

The Copyright Building will be a seven-storey office complex with 10,000sqm of rental space once completed.

It is let in full for a fixed term of 20 years to Capita Business Services, an IT service provider, and the ground floor is to be let to three retailers.

The West-End property is being acquired for the UniImmo Europa open-ended property fund.

Martin Brühl, chief investment officer and member of the management board of Union Investment Real Estate, said: “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.

“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 currently manages eight commercial properties in the UK, including three in London.