US developer and investor Tishman Speyer has been active in Europe since the mid-1980s and now wants to expand its presence in its chosen European markets
This summer has seen the opening of Tishman Speyer Properties’ (TSP) largest European project. The 124,500m2 Sony Center in Berlin, developed in partnership with the Sony Corporation and Kajima, provides Sony with its European HQ and brings life back to an area reduced to rubble by the division of Berlin.
This office-led mixed-use development, which includes the city’s tallest building, is a landmark project; a situation that TSP is used to being involved with. The company, founded in 1978 by Robert Tishman and Jerry Speyer, has such renowned properties in its portfolio as New York’s Chrysler Center and Frankfurt’s Messeturm. It is also a shareholder in the Rockefeller Center in New York, which is now understood to be on the market.
As senior managing director Michael Spies says: “Our business strategy is to focus on larger assets and we are confident dealing with tall buildings.”
Worldwide, TSP owns 3.4m m2 valued at around $10bn. Its European portfolio comprises 320,000m2, with a value in excess of $2bn. “Our strategy is clearly pan-European, and we will establish and grow our presence in key markets in Europe,” says Spies.
This presence comprises London, Paris, Berlin and Frankfurt with Madrid being included as of May with the unveiling of TSP’s first Spanish project. While others countries such as Italy could be added, Spies says TSP will only be present in markets where it can build up a full range of resources to support its investments.
In 1998, TSP paid close to the asking price of £75m for the1960s London icon Millbank Tower. TSP is refurbishing the building, including replacing its services, floor-by-floor.
Across Europe, the company has a development pipeline of 220,000m2. This includes its first project in the City of London; it will redevelop the site formerly owned by J&H Marsh & McLennan, providing a new European HQ for the insurance broker as well as some speculative space in two buildings totalling 33,450m2.
In Spain, TSP’s debut project will be to develop up to 56,800m2 of offices, retail and hotel properties on the Parque Empresarial de las Rozas outside Madrid. The high-profile location already boasts occupiers such as Oracle, Compaq and Hewlett Packard.
In Paris, the company is waiting on planning permission for its major project, the 43,000m2 Tour CBX at La Défense.
The company manages four funds which provide the investment for its projects around the globe. US insurance firm Travelers was the initial investor, but is now one of several institutions.
For future expansion, TSP would be keen to work alongside more occupiers in projects along similar lines as with Sony and J&H Marsh & McLennan. It would also consider more corporate investments. Its first investment in France was a 40% shareholding in developer Cogedim.
With large discounts to net asset value still widespread in property companies across Europe, TSP also sees public companies as a potential avenue for investment, but Spies insists any corporate investment would be on a friendly basis.
Tishman Speyer
10th floor
Millbank Tower
21-24 Millbank
London SW1P 5QP
Tel 44 20 7333 2456
Fax 44 20 7630 6994
www.tishmanspeyer.com
