German fund manager Union Investment is in exclusive talks to buy DLA Piper’s new City headquarters at 160 Aldersgate, EC1, for around £200m – a net initial yield of circa 4.5%.
The building is owned by Castleforge Partners, which is carrying out an extensive redevelopment to provide 266,000 sq ft of offices. The project is due for completion in Q3 of this year.
Mercer bought the distressed corporate vehicle that controled 160 Aldersgate Street in August 2013 for £63m from special servicer Capita Asset Services.
DLA Piper exchanged on a 150,000 sq ft prelet at the building in July 2015.
The law firm currently occupies 110,000 sq ft at 3 Noble Street, EC2, as well as around 40,000 sq ft at 1 London Wall, EC2. Its leases expire in 2019.
GM Real Estate is advising Castleforge Partners; Savills is representing Union Investment.
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