(Bloomberg) -- Real estate investor Tishman Speyer has completed the sale of office buildings in London and Frankfurt for a total of almost $1.4 billion as it seeks to cash in on demand for European property, two people with knowledge of the deals said.
The New York-based company sold Verde, an office building in London's Victoria district leased to tenants including Oaktree Capital Group LLC and TP ICAP Plc, for 457.5 million pounds ($598 million) on Friday, the people said, asking not to be identified as the financial details are private. That followed the sale last week of the under-construction Ominturm tower in Frankfurt, for 662 million euros ($777 million), the people said. Both buildings were sold to German real estate funds, they said.
A spokesman for Tishman Speyer confirmed the sales but declined to comment on the financial details.
Investors such as pension and sovereign wealth funds have poured into European commercial real estate, lured by the potential for higher returns compared with bonds. U.S. private equity firms that bet on demand for European offices by modernizing and redeveloping buildings have been beneficiaries of that appetite in the past five years, selling completed projects to institutional investors for huge profits.
Tishman Speyer bought the London property for 170 million pounds in 2012, carried out a redevelopment and secured new tenants. The Frankfurt development, which will be the first tower to include offices and homes in the city, has already secured tenants including Morgan Stanley.
To contact the reporter on this story: Jack Sidders in London at jsidders@bloomberg.net
To contact the editors responsible for this story: Sree Vidya Bhaktavatsalam at sbhaktavatsa@bloomberg.net, Jon Menon
©2018 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
