Stockholm based Cityhold Group, which is owned in equal parts by the First and Second Swedish National Pension Funds, has exchanged contracts to buy 40 Holborn Viaduct, London, EC1 from Delancey’s principal client fund.
Cityhold will pay £137.75m (€174.41m) for the freehold office building, which will be its second London acquisition.
The property, which is in the Midtown area of London, has a net lettable area of 173,248 sq ft (16,095 m²). Tenants include Capgemini UK, Hitachi Rail Europe, GDF Suez E&P UK, Irwin Mitchell, Brewin Dolphin and Pret a Manger. The average unexpired lease is about eight years.
“We see this as a solid next step in building a core London property investment portfolio, having completed our West End acquisition of One Kingdom Street earlier this year. 40 Holborn Viaduct occupies a prime island site within Midtown, an area we believe has good prospects for rental growth going forward,” said Cityhold chief executive Per Sjöberg.
Cityhold’s owners, the First and Second Swedish National Pension Funds, will provide full equity funding for the acquisition
Savills advised Cityhold and CBRE represented Delancey.
