U.S. private equity firm Starwood Capital agreed to acquire the recently redeveloped Southbank Central property in London from Hermes Investment Management Ltd. and Canada Pension Plan Investment Board for more than £250 million, below the sellers' asking price of £280 million, the Financial Times reported, citing two people familiar with the matter.
The property, previously known as South Bank Tower, counts shared office group WeWork Cos. Inc. among its tenants. Southbank Central was sold at a 5.5% yield, one source told the publication.
In February, Starwood bought a seven-hotel Hilton portfolio in the U.K., while in June, it partnered with Australian property company Lendlease Corp. Ltd. to acquire The Silvertown Partnership, which holds development rights to a 50-acre site in east London.
Starwood did not respond to a request for comment, while Hermes declined to comment, according to the publication.