German fund buys £124m City property


Commerz Real AG, a German fund company, has bought commercial property in the City valued at £124 million, Reuters has reported.

Its purchase of Athene Palace, let mainly to Deloitte MCS Limited, was on behalf of its €10 billion (£5 billion) European open-ended property fund.

The company previously told Reuters it was interested in investing up to €3 billion in commercial property in London.

Cash rich funds are increasingly showing an interest in the UK market, which has recently felt the force of the credit crunch.

Lowered valuations and weakened predictions have generated interest from the Middle East, Germany and Ireland.

Data from the Royal Institution of Chartered Surveyors has revealed available office space has increased at the fastest rate since their survey began.