Hermes Real Estate and Canada Pension Plan Investment Board (CPPIB) have agreed to acquire the offices and retail elements, along with the residential ground rent income, of South Bank Tower by way of a forward commitment to purchase from joint venture owners, Jadwa Investment and CIT Group.
South Bank Tower, which was previously known as King’s Reach Tower, is a mixed-use scheme that involves the redevelopment of the original Seifert designed building. The scheme is set for practical completion between October 2015 and May 2016 and will comprise circa 269,000 sq ft office and retail accommodation, along with 191 residential apartments. All of the residential apartments will be accommodated in a tower that will have been extended by 11 stories to provide a total of 41 floors.
Chris Taylor, Chief Executive, Hermes Real Estate said: “Hermes Real Estate continues to deliver exceptional returns for its investors and has a reputation in the market for innovation and deliverability. Moreover, we have demonstrated our continued ability to source opportunities off-market and acting decisively backed up by our conviction on understanding how occupiers assess real estate.
“South Bank Tower is a major mixed-use development in a thriving part of London’s Riverside which is proving attractive for residential and commercial occupiers alike; it is located within the improving cluster of mixed-use developments which have transformed the area between Westminster Bridge and Tower Bridge along the South Bank and which is rapidly becoming a destination of choice for major occupiers attracted by proximity to excellent infrastructure, an attractive environment and access to a wide variety of retail, leisure and cultural outlets.”
George Kyriacou, Managing Director, from CIT Developments LLP, said: “Having already exchanged contracts on 132 of the 191 apartments without an official ‘launch’ yet, we are absolutely delighted with progress. Our residential marketing suite is due to officially open this September. The presale of the commercial parts of the building further cements the success of the project for us.”
Source: CIT www.cit.co.uk June 13, 2014