US property firm picks up Angel office development in bet on office return
American property firm Tishman Speyer confirmed the £86.5m purchase of a major office development in Islington this morning as it bets on workers returning the office.
The deal with British property investment business Derwent London sees the sale of their office freehold interest in Angel Square, just behind Angel tube station.
Derwent London announced the two firms have exchanged contracts for the site, which will now be refurbished by Tishman Speyer.
“This disposal reflects the strength of investment demand for central London office properties. Proceeds will be reinvested into our high quality development programme,” said Derwent London chief executive Paul Williams.
Derwent London say the reinvestment into the company will take place over the next few months and year.
Bernard Penaud, head of Europe for Tishman Speyer, said “We’re delighted to have acquired Angel Square, to open a new phase of investment for us in the London market. With the current leases reaching expiry, we will use the opportunity to undertake a significant refurbishment consistent with our strategy of creating state-of-the-art, premium-quality office environments in prime locations in Europe’s major cities.”
The pandemic saw demand for office space dwindle, but Tishman Speyer firmly believes the purchase will pay off with the prospect of London commuters shifting back to working in the office rather than from home.
Prior to the purchase the Angel Square multi-let building was let to Expedia and The Office Group.