VGV, the pension fund for doctors and dentists in Berlin, has purchased London office space at 1-5 Howick place for £205m, from Invesco Real Estate.
It is the first sale from Invesco’s asset portfolio since signing a new management agreement in April, 2014.
The purchase comes as VGV continue to expand their existing office footprint within the UK. They have secured 60 Holborn Viaduct in Central London for £250m in a joint venture with Hines, which is currently let to Amazon. They also have space in Birmingham’s Brindley Place complex.
The purchase of the property was funded by CBRE Global investors.
The CBRE Global Investors fund won a £392m mandate from VGV, which was used to invest in various other properties throughout Europe.
In order to diversify it’s portfolio, the fund invested in hotel, office, residential and retail space in a 172,561 sq. ft scheme. Tenants include Giorgio Armani, Informa and Edelman, with residential space managed by Octavia Housing in a deal expiring in 2137.
CBRE GI, director of portfolio management, Harald Floeer, said, “The Victoria sub-market has experienced significant regeneration over the last five years, and we see this as a positive factor as the local vicinity continues to undergo improvements.”
By: Kirsty MacGregor
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