A joint venture between Singapore-based Temasek and Canadian investor Oxford Properties has entered exclusive talks to purchase the Blue Fin Building on London’s South Bank for around £465m.
The deal is one of the largest to date on the south side of the river as investment pours into the steadily maturing office location.
The purchase price for publisher Time Inc’s 500,000 sq ft Southwark behemoth reflects a yield of 4.5% on a circa £21m annual rent roll.
The Allies and Morrison-designed building at 110 Southwark Street, SE1 – named after its 2,000 blue aluminium cooling fins – has featured in films such as Salmon Fishing in the Yemen and television drama Spooks. The building is nearly 50% let to Time, which will remain in occupation.
Other occupiers include Tableau Software UK, Totaljobs, Justgiving and Trinity College London. Asking rents for the smaller vacant elements are £55 per sq ft.
Time launched a review of its assets in November 2014 and decided to divest its property holdings in the face of declining revenues. It has since sold two US properties and appointed Eastdil Secured to sell Blue Fin for £450m in May.
Time’s predecessor, IPC Media, forward purchased the scheme in 2004 for £200m from Land Securities.
Temasek and Oxford Properties have previously joined forces, having last year bought the £350m MidCity Place, WC1.
Temasek also holds a 25% stake in the consortium developing the skyscraper on the site of the planned Pinnacle tower at 22 Bishopsgate, EC2, in the City of London.
In March, it was also part of a consortium paying £308m for the £1bn Bankside scheme on the South Bank.
