Hermes Real Estate and Canada Pension Plan Investment Board’s London joint venture has completed a deal to forward purchase the South Bank Tower, SE1, from Jadwa Investment and CIT Group.
The jv has bought the office and retail elements of the scheme, together with the residential ground rent income, for £180m. Jadwa and CIT are currently extending the tower from 11 to 41 floors comprising 269,000 sq ft of commercial space and 191 flats.
Work is due to complete in May 2016. It is the second deal the jv has completed since its launch last July, when CPPIB paid Hermes £173.9m for a 50% stake in eight central London office buildings. CBRE advised the purchasers.
