Deka is closing in on one of the most sought-after City buildings on the market, less than a fortnight after a deal with another buyer fell through.
Scottish Widows Investment Partnership and Teachers Insurance and Annuity Association of America are in exclusive talks with the German fund to sell 5 Aldermanbury Square, EC2, for around £225m – a 5.25% yield.
KWAP, which was being advised by RREEF, had put the building under offer in August but negotiations broke down earlier this month.
The 270,000 sq ft 5 Aldermanbury Square attracted strong interest from a handful of high-power investors and it took GM Real Estate and Jones Lang LaSalle just days to find a new buyer.
The building is well let to tenants with strong covenants, including Fortis, BNP Paribas and BNP Paribas Real Estate.
It has been the subject of intense speculation, with several overseas investors including Gingko and PNB linked with potential deals.
One agent said: “This is another example of the demand for the best grade-A assets in London. Deka is one of the German funds known to have large amounts of cash for investment this year. The return of the well-established German funds as net investors in London has been increasingly evident in the last six months.”
Deka has had a particularly active 2012, buying the Guardian and Observer newspapers’ headquarters in Kings Cross, N1, for £235m and 1 Southampton Row, WC1, for £110m in the first half.
More recently, it has looked to cash in on West End demand by selling the £115m Chelsea block, 60 Sloane Avenue, SW3, and the £150m Lumina House at 333 Oxford Street, W1.
jack.sidders@estatesgazette.com
