Blackstone Buys $543 Million London Office Tower From Brookfield
Blackstone Group LP (BX) agreed to purchase an office tower near the Bank of England in the City of London financial district from Brookfield Property Partners LP (BPY-U) for 320 million pounds ($543 million).
Blackstone will acquire the 330,000 square-foot (30,657 square-meter) building at 125 Old Broad Street where tenants include broker DTZ and law firm King & Spalding LLP, Brookfield and Blackstone said in a statement today.
“This is our second investment in London this year within our core plus strategy,” Ken Caplan, head of European real estate at New York-based Blackstone, said in the statement. “We continue to believe strongly in London.”
Investors have been competing to buy London office buildings to gain from rising values and rents. The value of workspace in central London climbed 1.8 percent in May from a month earlier, according to Investment Property Databank Ltd. Rents for the best office buildings in the City of London increased more than 9 percent to 60 pounds a square foot in 2013 and will rise to 65 pounds this year, according to broker Knight Frank LLP.
“The proceeds of this sale will be reinvested into our significant City development program now well under way,” Martin Jepson, president and chief operating officer of Brookfield Property Partners’ European office division, said in the statement.
Blackstone bought Alban Gate, an office building in the financial district, for 300 million pounds from Carlyle Group LP earlier this month.
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