US private investment firm Starwood Capital Group has purchased South Bank Central, a London development scheme, for a reported £256 mln (€285 mln) from vendors Hermes Investment Management and the Canada Pension Plan Investment Board.
The deal represents a yield of 5.5%.
The development project on the river Thames comprises the refurbishment of the former South Bank Tower to create 226,000 ft2 (21,000 m2) of offices, plus residential, retail and restaurant space.
The scheme is split into two buildings, Vivo covering 178,218 ft2 and Alto, comprising 48,156 ft2 of space. WeWork currently occupies part of the building. Leasing activities are being managed by CBRE.
According to media reports, the price agreed was lower than the original asking price of £280 mln.