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TH Real Estate acquires LFEPA headquarters in Southwark


TH Real Estate has completed the £90m, off-market acquisition of 169 Union Street, Southwark, reflecting a NIY of c.5%, from Zeno Capital, advised by Oxygen Asset Management.

The 120,000 sq ft property is the headquarters for London Fire and Emergency Planning Authority (LEFPA) and has been acquired on behalf of the Henderson UK Property OEIC.

With a long leasehold to LEFPA of 12 years, the Fund’s strategy continues to focus on high-quality properties with strong tenants on long leases. The asset comprises an island site office building, that was originally built as the Royal Mail’s parcel sorting office in 1905. The building’s exterior has attractive warehouse style features, while the interior benefits from large open floor plates and a modern, open-plan layout, most recently refurbished in 2007.

The Henderson UK Property OEIC has invested over £450m in high-quality assets over the course of 2015 to date, including Tower Retail Park in Crayford and Dalton Park Outlet Mall in Durham. This year, the Fund has also added to its London office portfolio, with acquisitions in Bermondsey Square and Bunhill Row. The Fund is currently valued at over £3.6bn.

Marcus Langlands Pearce, Co-Manager of the Henderson UK Property OEIC, commented: “Our strategy has been to increase the Fund’s exposure to Central London. The offices at 169 Union Street provide a defensive and liquid core freehold asset, with strong rental growth potential. Southwark is well positioned for significant rental growth, as demand is now considerably outstripping supply, meaning that available space is now the lowest across all Central London office sub markets.”



This article is intended solely for the use of professionals and is not for general public distribution.

Issued by Henderson Real Estate Asset Management Limited, 201 Bishopsgate, EC2M 3BN. Authorised and regulated by the Financial Conduct Authority. TH Real Estate is a name under which Henderson Real Estate Asset Management Limited provides investment products and services. Past performance is not a guide to future returns. The value of investments and any income will fluctuate (this may be partly be the result of exchange rate fluctuation) and investors may not get back the full amount invested. Where opinions have been expressed, they are based on current market conditions and are subject to change without notice.

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Sophie Hinder-Walbank, Marketing & Communications Manager