Hermes Real Estate, (“Hermes”) and Canada Pension Plan Investment Board (“CPPIB”) have announced the sale of two London office properties as part of their London office joint venture.
The joint venture partnership has exchanged contracts to sell the freehold interest in 100 New Oxford Street, W1, to Tishman Speyer Properties (UK) Limited. Completion is expected after the ongoing refurbishment of three floors.
The partnership has also completed the sale of its long leasehold interest in 69 Carter Lane, EC4, to The Low Carbon Workplace Fund, which is managed by Threadneedle Property Investments Ltd, for £17.55 million. The sale was agreed on an off-market basis with planning consent recently secured for an additional floor.
Chris Taylor, CEO, Hermes Real Estate, said: “The sale of 100 New Oxford Street and 69 Carter Lane reflects the joint venture partnership’s commitment to diversifying the portfolio through a combination of judiciously timed asset disposals releasing significant value added through strategic asset management and making new acquisitions where we believe additional value can be added. In June 2014, the partnership entered into the forward commitment to acquire the 269,000 sq ft South Bank Tower and continues to review further similar opportunities.”
Andrea Orlandi, Managing Director and Head of Real Estate Investments Europe, CPPIB, commented: “The sale of these prime London properties is a good example of how the joint venture is delivering on its strategy of holding a well-balanced portfolio, while at the same time capitalising on opportunities to generate value for the joint venture.”
Fineman Ross acted for Tishman Speyer in relation to 100 New Oxford Street. Savills and Nabarro acted for the joint venture partnership in relation to 69 Carter Lane.