A US-listed real estate investment firm has bought prestigious
office developments in the heart of London’s
City financial district for a total of $829 million, making it one of the biggest
property transactions in recent years.

Brookfield Office Properties bought the portfolio of premier
office buildings and a development site in the City from Hammerson, the UK firm. The
properties comprise a total of 884,000 square feet (720,000 square feet at
ownership), acquired at an initial yield of 6 per cent. In addition, the acquisition
includes a development site with in-place planning consent for an office and
residential tower comprising 857,000 square feet.

The buyer is financing its purchase through the assumption
of $106 million, additional property-level debt expected to be put in place
prior to close, and from available cash resources, it said in a statement.

The assets:

-- 125 Old
Broad Street - This is a 26-story office tower at
the site of the former London Stock Exchange, which was completely redeveloped
in 2008;

-- 99 Bishopsgate,  -
A 26-story, 339,000-square-foot office building that was redeveloped in 1995,
standing next to Liverpool Street Station;

-- Leadenhall Court - A 109,000-square-foot office building
located on the corner of Gracechurch Street and Leadenhall Street within steps
of the Lloyd's of London building.

Brookfield
has also agreed to acquire the Principal
Place development site for which planning consent
has been granted for a 599,000-square-foot office tower, a 51-story,
237,000-square-foot residential tower, and ancillary retail. The property is
located between the Liverpool
Street and Shoreditch High Street rail stations.

Additional smaller assets included in the acquisition are 1
Puddle Dock and buildings on Shoreditch
High Street adjoining Principal Place.