Hermes Real Estate, the property manager owned by the BT Pension Fund, and the Canada Pension Plan Investment Board (CPPIB) have bought South Bank Tower as part of a 50:50 London partnership.
South Bank Tower is a mixed residential, office and retail redevelopment of King’s Reach Tower. Hermes Real Estate’s Chris Taylor said the site is in an up and coming area for commercial and residential use. “It is located within the improving cluster of mixed-use developments which have transformed the area between Westminster Bridge and Tower Bridge along the South Bank, and which is rapidly becoming a destination of choice for major occupiers attracted by proximity to excellent infrastructure, an attractive environment and access to a wide variety of retail, leisure and cultural outlets.” The site will consist of 269,000 square feet of office and retail accommodation, with 191 residential apartments in a 41 floor tower.
Taylor added that London remains a key location for Hermes, despite high prices, due to its attractiveness to major corporations and to young people from across Europe. He cited Google’s new office near Kings Cross, and decisions by AON to move its corporate HQ to be near Lloyds of London, and by Vodafone to shift its research centre from Silicon Valley to London, as evidence that London is a key property market.