18 April 2017
Reporter: Theo Andrew

Deka acquires £485 million London office

Deka Immobilien has acquired Cannon Place from its developers for £485 million, in an off-market deal.

Developed by Hines in partnership with Network Rail and London Underground, the building offers 418,198 square feet of office space, costing approximately £360 million to develop.

The two basement floors offer retail space and residential accommodation, while eight upper floors provide office space, currently let to six tenants.

Fully occupied since November 2016, tenants include CMS Cameron McKenna, Threadneedle Asset Management and Franklin Templeton. The income weighted average unexpected term is 18.5 years.

John Heaver, director at Savills, said: “This prized landmark, core City of London development has excellent transport links, a rich mix of tenants and unusually long income.”

Ross Blair, senior managing director and head of Hines UK, said: “Hines is incredibly proud of this project which was borne out of high quality architecture and engineering solutions. The development attracted a prestigious occupier line up which is testament to the space created and its location in the heart of the City.”

Deka acquired another London property earlier in the year for £375 million, highlighting the German bank’s confidence in London post-Brexit. One Rathbone Square will be home to Facebook.

Deka was represented by Savills and CBRE represented the seller.

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