Global investor Hines has agreed a deal to buy the Worship Square office building in the City of London for £185M in one of the largest London office deals this year.
Hines will buy the 140K SF building from HB Reavis, Green Street News reported.
It will be the company’s first London office deal in two years.
The deal represents a yield of 5.9%, Green Street said. The building was completed in July last year and is fully let to tenants, including fintech firm Wise, which occupies 80K SF, and consultancy Frontier Economics.
The deal is another step in the slow but steady improvement in the London office investment market as buyers purchase new assets that have the potential for rental growth.
A joint venture between Australian pension fund Aware Super and Delancey has bought a trio of London offices for more than £450M in the past six months. And Ares has been buying West End offices for its value-add funds — the district is traditionally the preserve of buyers with a lower cost of capital.
Worship Square, which is next to the Broadgate campus, has a £106M green loan from HSBC secured against it and is fully electric, with an EPC rating of A.
HB Reavis will recycle the proceeds from the sale into its development pipeline, Green Street said.
CBRE advised HB Reavis on the sale.