The German capital investment company Union Investment Real Estate AG has successfully completed the sale to Arab Investments of its interest in The Pinnacle which will allow the next phase of development for the City's tallest building to proceed.
The Pinnacle will become the tallest building.
The Pinnacle, designed as 'Bishopsgate Tower' by the British affiliate of the American based architectural company Kohn Pedersen Fox (KPF) will become the tallest and largest building in prime City at 60 stories and 288 m tall. The overall gross external area of the development is 131,511 m², offering approximately 88,000 m² of office accommodation over 47 floors between levels three and fifty three. Three levels of retail in the base provide a new concentration of public activity on Bishopsgate and St Helen's Square. (See note below).
Union Investment's sale to Arab Investments not only means that it has realized more than its original investment in the scheme, but it has also secured the right party to deliver the project.
Dr Frank Billand, Member of the Board of Directors of Union Investment Real Estate AG, said, "We are delighted that we have now completed the sale of The Pinnacle development to Arab Investments. Following the receipt of planning permission from the City of London last year, the sale has now realized the increased value of the property in the Union Investment fund. Union Investment will continue to have an ongoing commitment to the London market, which currently includes our co-investment in an office development scheme in Paddington and our Austral House development in the City, and will look at other investment opportunities in the future."
Arab Investments has the strength to realize the scheme with a tight deadline which began with demolition at Crosby Square in January and is proceeding with the next stage of demolition commencing in June at Crosby Court and Bishopsgate.
Source: Union Investment