German fund manager Deka has made an offer for the Drapers Gardens scheme in the City. The development, which comprises almost 300,000 square feet of prime London office space, is currently home to Blackrock Investment Management, who are paying £49 per square foot.
Deka is thought to have offered more than £240 million for the property, realising a yield of just over 5 percent. Rent reviews in the future will further raise the building’s profitability. Other bidders were short-listed, but it appears that Deka will be successful.
Drapers Gardens is a joint-owned scheme that attracted interest from a number of overseas investors, and one of a number of high-profile sales in the capital in the opening months of 2010.
The development – which is built on land owned by the Drapers’ Company, close to St Paul’s Cathedral – was completed in 2009 and replaced a much taller skyscraper, which was demolished in 2007.