Blackstone buys London office building for £175m
The Blackstone Group is under contract to buy the eight-story Sanctuary Buildings in London from Tishman Speyer. The sales price is approximately £175 million, or £711 per square foot ($283 million/$1,248 per square foot).
The 227,100-square-foot office property is 100 percent occupied by government agencies. The lease expires September 2017.
Like many U.S. investors spending capital internationally, particularly in Europe, Blackstone has been active in the London market. During the third quarter, the firm paid £345.2 million ($551.9 million) for 125 Old Broad St., £174.04 million ($278.3 million) for 25 The North Colonnade and £318.95 million ($510 million) for Alban Gate.
Overseas investors have for the first time overtaken U.K. institutions to become the largest owners of U.K. commercial property, according to Property Industry Alliance. The value of portfolios held by overseas owners has more than doubled (129 percent