TH Real Estate has completed the £90 mln (€127 mln), off-market acquisition of 169 Union Street, Southwark, reflecting a net initial yield of approx. c.5%, from Zeno Capital, advised by Oxygen Asset Management.
The 120,000 ft² (11.148 m²) property is the headquarters for London Fire and Emergency Planning Authority (LEFPA) and has been acquired on behalf of the Henderson UK Property OEIC.
The asset comprises an island site office building, that was originally built as the Royal Mail’s parcel sorting office in 1905. The building’s exterior has attractive warehouse style features, while the interior benefits from large open flooring and a modern, open-plan layout, most recently refurbished in 2007.
The Henderson UK Property OEIC has invested over £450 mln (€621 mln) in high-quality assets over the course of 2015 to date, including Tower Retail Park in Crayford and Dalton Park Outlet Mall in Durham. This year, the Fund has also added to its London office portfolio, with acquisitions in Bermondsey Square and Bunhill Row.
Source: TH Real Estate