Hayfin Capital Management (Hayfin) and Capreon have acquired the iconic 70 St Mary Axe ‘Can of Ham’ office building in the City of London from Nuveen Real Estate.
The 21-storey, Grade A office tower, which was developed by Nuveen and opened in 2019, reportedly sold for in the region of £335m to £340m making it one of the largest office investment deals in London so far this year.
The property is currently fully let to 13 blue-chip tenants, including multinational law firm Sidley Austin.
The transaction was majority-funded by Hayfin and supported by Capreon, with whom Hayfin has worked on real estate investments since 2017. Capreon will asset manage the building.
Carlos Colomer, managing director of Hayfin, said: “70 St Mary Axe is a truly landmark London office building and an attractive addition to our real estate portfolio. This prime asset has an iconic design and outstanding location. Occupier demand for top-tier City offices with strong sustainability credentials remains robust, tracking significantly above the long-term average, with the number of jobs in the Square Mile having risen by 25% since 2019 while future supply declines.
“This investment provides us with high quality exposure to this market, through a state-of-the-art space that supports collaboration and meets the needs of its tenants. We look forward to being continued stewards of this exceptional building after a highly successful period for the asset under Nuveen’s ownership.”
Raphael Noe, CEO of Capreon, added: “We are pleased to be investing in 70 St Mary Axe, an iconic Grade A building that reflects the quality and long-term value we seek across our portfolio. We are delighted to work with Hayfin again, a long-term partner, and to have completed another smooth transaction with Nuveen. The building’s strong ESG credentials, high quality amenities and focus on occupant wellbeing position it well within a market where demand for best-in-class workspace remains resilient. We look forward to applying our asset and investment management expertise to support the continued performance of this exceptional asset.”
Liz Sworn, fund manager at Nuveen, said: “We are pleased to have successfully divested 70 St Mary Axe to Hayfin and Capreon. After recognising the site’s potential, we aggregated the land originally owned by TIAA-CREF, secured planning consent and achieved practical completion in Q1 2019. Since opening, we established this landmark property as a premier Grade A office destination with full occupancy, high quality tenants, and best-in-class sustainability standards. The sale proceeds will be reinvested into other market opportunities and we look forward to our continued partnership with both firms.”
Macfarlanes and CBRE advised Hayfin and Capreon on the transaction. Clifford Chance, Cushman & Wakefield and Newmark acted on behalf of the vendor. Santander and CaixaBank provided debt financing for the transaction.
