Tishman Agrees to Buy London Office Project as Demand Heats Up
(Bloomberg) -- Tishman Speyer Properties LP has agreed initial terms to buy an office redevelopment project in London’s Angel district from Derwent London Plc.
The New York-based investor has offered a price above book value for Angel Square, which was recently listed for sale for about 80 million pounds ($111 million), people with knowledge of the terms said. Intense competition for new offices amid a shortage of construction pushed up bidding, the people said, asking not to be identified because the talks are private.
The deal isn’t yet complete and talks could still collapse, the people added. A spokeswoman for Derwent declined to comment. A spokesman for Tishman Speyer wasn’t immediately able to respond to requests for comment.
The pandemic stalled the development of new projects in London’s office market as some investors and lenders were spooked by the prospect of a sharp downturn and a long-term shift to home working. That’s set up the potential for a supply shortage as demand for the best new space remains firm.
Tishman has bet heavily on the future of office demand in the world’s biggest financial capitals, president Rob Speyer said at a conference Wednesday.
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