Office

Leadenhall Triangle, City of London

17 02 24 TH Real Estate acquires 539 Bryant St in San FranciscoWe have specialist office teams which bring significant experience to the business. We manage $33.5bn of offices across the world, in a variety of funds and segregated mandates, for clients looking to access the key gateway cities around the world.

We manage $4.5bn of office assets in Central London, with a strong development pipeline led by an experienced in-house office development team. Significant development projects include 40 Leadenhall Street and 70 St Mary Axe, which will transform London’s skyline.

We also manage assets in Austria, France and Germany within Europe.

We entered the Australian office market in 2014 acquiring interests in 101 Miller Street in Sydney, and 699 Bourke Street in Melbourne. In 2016, we acquired Ginza 1 Chome Building in Tokyo, Japan.

We manage office properties in major US cities, with the majority of our portfolio consisting of core trophy quality assets. For example, TIAA and Norges Bank Investment Management co-own a number of US office assets including The Orrick Building in San Francisco, a 10-storey, c.520,000 sq ft (c.48,500 sq m), Class A, LEED Platinum office building.

Recent highlights

 

 
Nick Deacon

Nick Deacon

Fund Manager

Nick's biography
With a rapidly changing occupier base, it is essential to stay ahead of the trends and adapt our strategies accordingly. Rather than ‘chasing the pack’, we like to do things differently. We combine our intuition and experience to source opportunities that meet and exceed our clients’ objectives, and utilise our in-house development expertise to deliver new and improved, world-class buildings into the market at the right time.

Sectors:

Leadenhall Triangle, City of London

40 Leadenhall Street, City of London

Planning permission was achieved in 2014 for a 900,000 sq ft (c.84,500 sq m) NIA high quality building at 40 Leadenhall Street, London, UK. The development varies between 7 and 34 storeys, with its highest point 154m above ground level.  

Sustainability is high on the design agenda: The building will reduce carbon emissions by over 40% compared to current regulations, and will achieve Excellent BREEAM standard with measures to reduce solar gain, parking for 1,067 cycles and almost 100 showers. 

The scheme is capable of being brought forward this year with completion anticipated by autumn 2019.

475 Fifth Avenue

475 Fifth Avenue, New York, US

We acquired 475 Fifth Avenue in 2011, and embarked on an ambitious plan to fully modernise and reposition the asset into a Class A office building. The project included a restoration of the original brick and limestone masonry, repositioning of the main entrance, a fully redesigned lobby, modernised elevators, and ground-level retail renovation, increasing the retail offering by 10,213 sq ft (950 sq m).

As a result of the building renovation and infrastructure replacement, 475 Fifth Avenue achieved a LEED Silver certification demonstrating our commitment to developing and managing an energy efficient work environment. With its incomparable views of the New York Library and Bryant Park, and six terraced floors, the asset has attracted tenants from all industries, ranging from high-powered financial firms and international corporations, to architectural, technology and major media companies. It is currently 70% leased (compared with 13% at time of purchase).

Source: TIAA-CREF, 30 September 2015.

699 Bourke Street

Entry into the Australian market

Our entrance into the Australian office market has been marked by a number of significant transactions. In October 2014, we acquired a 50% stake in 101 Miller Street, a c.500,000 sq ft (c.37,500 sq m) office tower and retail plaza in North Sydney, for in excess of $250m. This was preceded by the acquisition of a 50% interest in 699 Bourke Street, a Melbourne office, following the signing of a Relationship Deed between TIAA-CREF and Mirvac in early 2014.

These investments are testament to our long-term strategy within Australia, where we now have a portfolio of c.$561m. We are committed to building sustainable relationships with established partners and investors within the region.

Source: TH Real Estate, 30 September 2015.

Foundry Square II

Foundry Square II

In September 2014, a joint venture between TIAA-CREF and Norges Bank Investment Management purchased Foundry Square II, a 521,555 sq ft (c.48,500 sq m), trophy-quality, LEED Platinum office building located in San Francisco’s South Financial District.

Only eight months after the acquisition, the value had increased by nearly $46m (11%). We proactively recaptured two units and re-leased them, and also restructured the lease with a significant tenant. Overall, the new terms resulted in a $23.2m increase in rental income – when comparing in-place rents at the time of purchase to new rents – over the term of the leases.

With this initiative, asset management demonstrated its ability to create exponential value in just a matter of months, and we will continue to seek ways to further enhance the performance of this property.

King

King’s Cross, London, UK

Following our appointment as Investment Manager for AustralianSuper’s emerging central London office property investment strategy, we advised the c.$60bn Australian Superannuation Fund on its acquisition of a 25% stake in King’s Cross Central in March 2015. The transaction represented AustralianSuper’s first London investment, and second in the UK, following its acquisition of thecentre:mk in 2013, also advised by TH Real Estate.

The 67-acre King’s Cross site will remain a single entity, managed under the current ‘one estate’ approach, with Argent remaining as developer and asset manager. The central London exemplar, mixed-use development has become one of the city’s most successful neighbourhoods, set to grow further over the next five years with additional homes, offices, schools, retail, leisure, cultural and community spaces. When the scheme is complete, there will be over 50 new and refurbished buildings totalling 5.8 million sq ft (c.589,000 sq m) NIA, with a total value in excess of $7.4bn.

The Steward Building

The Steward Building, London, UK

On behalf of our Central London Office Fund, we recently completed development of The Steward Building, a c.75,000 sq ft (c.7,000 sq m) mixed-use scheme, located close to the edge of Spitalfields Market in London. In line with our commitment to deliver high quality and sustainable buildings fit for Tomorrow’s World, the scheme has been designed to achieve BREEAM Excellent. The top three floors have been let to an office tenant, and the retail units have been let to Anthropologie, COS and Hotel Chocolat. Both office and retail rents set a new benchmark record for the City.

Note: Past performance is not a guide to future performance.