Deka Immobilien has secured a further high quality real estate asset in London. The fully-let core office building known as Cannon Place is under contract for a “headline price” of ca. €570.4m (£485m). The US real estate company Hines were the developer in partnership with Network Rail and London Underground. The asset will be held under a joint venture structure between the open-ended real estate mutual funds Deka-ImmobilienGlobal and WestInvest InterSelect.
Cannon Place was completed at the end of 2011 and offers close to 39,000 m² of leasable space in the heart of the City of London, directly above Cannon Street Station. The striking, landmark building offers generous floor plates that can be custom partitioned, thus offering particularly efficient spaces for occupiers. It is fully leased under long-term agreements to seven tenants, with the law firm of CMS Cameron McKenna anchoring the building. The average weighted lease term comprises approximately 19 years.
Through this acquisition, the funds are able to secure a contemporary property in a prime location with long term leases that promise a consistently stable income stream.