Tishman Speyer, in partnership with UBS's Commercial Real Estate Group (soon to be part of Dillon Read), SITQ and the Schroder Exempt Property Unit Trust (SEPUT), has announced the acquisition of Citypoint from the City of London Office Unit Trust (CLOUT) for an undisclosed sum.
The landmark, 36 storey tower in the City of London provides approximately 706,000 sq.ft (65,590 m²) of accommodation including 612,600 sq.ft (56,912 m²) of grade A office space and 27,500 sq.ft (2,555 m²) of retail. Standing at 416 ft (39 m.), it is one of only 7 towers in the City of London and has historically commanded some of the highest rents of any property in the financial district.
The property is multi-let to more than 20 tenants including Simmons & Simmons, Regus, Simpson Thatcher & Bartlett, Macquarie Bank, Whitbread and Vinson & Elkins.
The Tishman investment is being made through Tishman Speyer's European Real Estate Venture VI, a new 2 billion value-added fund actively investing across Europe. The acquisition of Citypoint represents the second asset for the the fund, the first being Köenigsallee 45-55, a 457,000 square foot office complex in Düsseldorf which serves as Deutsche Bank's regional headquarters.
Two of the existing CLOUT unitholders, SEPUT and SITQ have transferred their interests into the new partnership, with SEPUT selling down 50% of its stake in the building.
"This is an outstanding asset for our European value-added fund. It's an exceptionally well located property with secure tenancy, tremendous value and potential for improvement and growth." commented Mark Kingston, Managing Director and Head of Tishman Speyer's UK business. "Tishman Speyer has built a reputation for acquiring and developing top class properties that includes such well-known icons as New York City's Chrysler Building, Rockefeller Center and Met Life building, London's Tower Place, Paris' Tour CBX, Frankfurt's MesseTurm and Berlin's Sony Center. Citypoint is a great addition and represents another milestone for our business in the UK and Europe."
Tishman Speyer is already well known to a number of Citypoint's tenants who occupy space in their buildings. They include Macquarie Holdings , Vinson & Elkins, Simpson Thatcher and Simmons & Simmons.
On behalf of the parnership, Tishman Speyer will assume responsibility for the operation and management of the building.
Source: Tishman Speyer