mast image

Impact Investing

IPE special report May 2018

Sections

PFA offloads £43.5m York office property to Standard Life Investments

Related images

  • Nyhavn in Copenhagen, Denmark

Related Categories

Denmark’s PFA Pension has sold an office property in York in the UK for £43.5m (€54.4m) to Standard Life Investments on behalf of one of its segregated clients.

The purchase price for King’s Pool – a 142,221ft2 office complex – reflects a net initial yield on the property for Standard Life investments of 5.9%, according to UK property firm Strutt & Parker, which advised PFA Pension.

Simon Bland, head of national markets at Strutt & Parker, said: “With the investment market so strong for long-let, well-secured assets benefiting from fixed rental increases, PFA Pension decided the timing was now opportune to sell King’s Pool, which was their last remaining direct UK investment holding.”

PFA Pension – Denmark’s largest commercial pensions provider, with DKK417bn (€56bn) in group assets – had owned King’s Pool since 1994, Strutt & Parker said.

The office property is let to several government departments on a long lease running until March 2028.

It is located close to York Minster, as well as the city’s retail and leisure amenities, the property firm said.

Next to the property is a 10-acre development site, called Hungate, which has outline planning consent for 720 residential buildings and more than 200,000ft2 of commercial space, it said.

Standard Life Investments said the purchase reflected its strategy to invest in well-positioned, grade-A office space with the potential to deliver strong long-term returns.

Standard Life Investments was represented by CBRE in the deal.

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2436

    Asset class: Real Estate - Core Open-ended Real Estate Equity Fund (non-listed).
    Asset region: Asia Pacific.
    Size: Approx. CHF 70-100m per investment.
    Closing date: 2018-05-25.

  • QN-2438

    Asset class: High Yield Bonds.
    Asset region: US.
    Size: USD 300 million.
    Closing date: 2018-05-25.

  • RE-2441

    Closing date: 2018-05-31.

Begin Your Search Here