Property giant Brookfield praises London as it completes £635m office deal

·2 min read
 (Brookfield)
(Brookfield)

The Canadian investment giant Brookfield has demonstrated confidence in London’s office market, despite Covid-19 disruption, completing on a £635 million building purchase in the City.

Real estate funds managed by Brookfield Asset Management this week completed on a deal for 30 Fenchurch Street, a 550,000 square office property.

The buyer is understood to have been attracted to strong occupancy levels and the site having good transport links, including access to the new Elizabeth Line.

Brad Hyler, managing partner and head of european real estate at Brookfield, said: “As a long-term investor in the City of London, we believe the City is an attractive investment market and we are excited to expand our portfolio with the acquisition of 30 Fenchurch Street.”

The company has a number of projects in the capital, and is one of the owners of Canary Wharf Group.

The latest purchase comes despite plenty of market commentary on how occupier demand for office space could be lower due to numerous firms embracing flexible working post-pandemic.

Bosses in various sectors have been impressed at how well employees adapted to working from home over the last year, in line with government guidance, and some firms are looking to reduce HQ space. A mixture of home and office is hours is set to be popular after the latest guidance around working from home eases.

However, real estate investors are betting on demand for modern and high quality space being solid in central London.

Large lettings so far this year have included TikTok UK signing for a building in Farringdon and New York-headquartered PVH Corp, behind the Calvin Klein fashion brand, agreeing a pre-let in White City.

Brookfield’s Hyler added: “London remains the commercial centre of Europe and one of the world’s premier global gateway cities, and as such we see continued robust demand for premium, well-amenitized office space in prime locations with strong sustainability and wellness credentials.”

The transaction is understood to be the largest City acquisition since the start of the pandemic.

The Sunday Times, which tipped the deal in late May, said the purchase was from the trustees of the Safra family.

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