A US-listed real estate investment firm has bought prestigious office developments in the heart of London’s City financial district for a total of $829 million, making it one of the biggest property transactions in recent years.
Brookfield Office Properties bought the portfolio of premier office buildings and a development site in the City from Hammerson, the UK firm. The properties comprise a total of 884,000 square feet (720,000 square feet at ownership), acquired at an initial yield of 6 per cent. In addition, the acquisition includes a development site with in-place planning consent for an office and residential tower comprising 857,000 square feet.
The buyer is financing its purchase through the assumption of $106 million, additional property-level debt expected to be put in place prior to close, and from available cash resources, it said in a statement.
-- 125 Old Broad Street - This is a 26-story office tower at the site of the former London Stock Exchange, which was completely redeveloped in 2008;