The company that acquired Chicago’s Willis Tower in the largest office real estate purchase in American history for $1.3bn earlier this month, are to buy London office building ‘Times Square’ for £268.4m.
New York based private equity firm Blackstone Group LP have agreed to purchase the building, which lies in the heart of London’s financial district, from current owners Land Securities Group Plc.
Land securities have owned Times Square since 2005, only two years after construction was completed on the building. They will retain a 5% stake of the 380,000 sq ft. real estate, which they say generates £13.5m in rent every year.
Among the companies who already occupy the building are Bank of New York Mellon Corp and law firm Dechert, with further tenancies available for leases until 2023.
The purchase comes as part of Blackstone’s growing investment in London, as head of real estate Europe, Anthony Myers, explains: “This is our fourth investment in London as part of Blackstone Property Partners’ Core+ strategy, following the most recent acquisition of 125 Old Broad Street. Times Square fits the Core+ strategy extremely well as a high quality, well-leased asset in the centre of a global gateway city.”
By: Kirsty MacGregor
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