Hermes Real Estate Investment Management Limited (HREIML) and Canada Pension Plan Investment Board (CPPIB) have announced the acquisition of Aldgate House, London, EC3 as part of their 50:50 office joint venture. The deal marks the partnership’s first purchase following its formation in July.
The multi-let asset provides over 214,000 ft² (approx. 19,880 m²) of high-quality office accommodation next to Aldgate Underground station. The property was purchased for £100 million (approx. €118 million) from the vendor, clients of Orchard Street Investment Management. Occupiers in the building include Thomson Reuters, LCH Clearnet and ISG.
Chris Taylor, CEO of Hermes Real Estate Investment Management Limited said: “The acquisition of Aldgate House as part of our joint venture with CPPIB marks a significant first step in our partnership’s strategy of increasing the size of the portfolio of value-add assets. We have an excellent performance track record across our portfolios, both here in London and increasingly on a global basis. We are anticipating further selective expansion of the partnership with the aim of capitalizing upon the robust economic drivers which we observe across the Central London market.”
Wenzel Hoberg, Managing Director and Head of Real Estate Investments Europe for CPPIB, said: “We are delighted to secure our first transaction alongside Hermes Real Estate having set up the joint venture this summer. This acquisition complements our existing London office portfolio and highlights our desire to grow the partnership with Hermes Real Estate as we continue to execute on our strategy of acquiring high-quality properties.”
Jones Lang La Salle advised HREIML and CPPIB’s joint venture partnership whilst GM Real Estate acted on behalf of Orchard Street Investment Management.
Source: Hermes Real Estate