Hermes Real Estate and Canada Pension Plan Investment Board (CPIB) have agreed to buy a major London office led development for a reported £150m.
The pair have agreed to purchase the South Bank Tower development from its joint venture owners, Jadwa Investment and CIT Group, as part of their 50:50 London partnership designed to amass a central London portfolio of around £700m.
As part of the deal, CPPIB and Hermes are set to acquire around 269,000 sq.ft. of London office and retail space in the development, as well as 191 apartments.
Discussing the opportunities at the development, Hermes Real Estate chief executive, Chris Taylor, said: “South Bank Tower is a major mixed-use development in a thriving part of London’s Riverside which is proving attractive for residential and commercial occupiers alike.
“It is located within the improving cluster of mixed-use developments which have transformed the area between Westminster Bridge and Tower Bridge along the South Bank and which is rapidly becoming a destination of choice for major occupiers attracted by proximity to excellent infrastructure, an attractive environment and access to a wide variety of retail, leisure and cultural outlets.”
Previously known as King’s Reach Tower, the scheme is set for completion at some point between October 2015 and May 2016.
CPPIB Europe managing director and head of real estate investments Europe, Wenzel Hoberg, added: “We are pleased to complete the acquisition of a mixed-use property which complements CPPIB’s London office portfolio.
“We look forward to further expanding this venture alongside Hermes to acquire high quality properties in Central London.”
By: Kirsty MacGregor
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