TH partnership seeks to shed London weight
TH Real Estate’s €2bn (£1.7bn) pan-European Cityhold Office Partnership is aiming to scale down its “overweight” exposure to London.
The joint venture between TH’s parent TIAA-CREF and Swedish pension funds AP1 and AP2 has sold The Peak, Wilton Road, SW1, to Wolfe Asset Management, the property arm of Dubai’s Easa Saleh Al Gurg Group, for £145m – a 4.27% yield.
It has also appointed JLL to speak to a shortlist of parties in relation to a potential swap transaction of 1 Kingdom Street in Paddington, W2, in return for other prime assets in mainland Europe. It is understood to be valued at around £300m – a 4.75% yield.
TH Real Estate’s €2bn (£1.7bn) pan-European Cityhold Office Partnership is aiming to scale down its “overweight” exposure to London.
The joint venture between TH’s parent TIAA-CREF and Swedish pension funds AP1 and AP2 has sold The Peak, Wilton Road, SW1, to Wolfe Asset Management, the property arm of Dubai’s Easa Saleh Al Gurg Group, for £145m – a 4.27% yield.
It has also appointed JLL to speak to a shortlist of parties in relation to a potential swap transaction of 1 Kingdom Street in Paddington, W2, in return for other prime assets in mainland Europe. It is understood to be valued at around £300m – a 4.75% yield.
The Peak is a 100,000 sq ft office bought in 2012 from Heron International for £113m – a 5% yield. Tenants include Bank of Scotland, PetroChina and Guggenheim.
Cityhold bought the 227,000 sq ft 1 Kingdom Street in 2011 for £230m, a 6% yield, from Aviva Investors and Union. Vodafone is the major occupier, alongside Statoil and Shire Pharmaceuticals.
The fund is reinvesting some cash into the development of the 300,000 sq ft “Can of Ham” at 60-70 St Mary Axe, EC3, which is scheduled to complete in 2018.
CBRE acted for Al Gurg; JLL acted for TH Real Estate.
• See also, Al Gurg Group buys the Peak
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