The Palestra building was designed by Will Alsop, the Stirling Prize winning architect. With its distinctive sloping facades that are capped off by a cantilevered upper deck, it towers over the surrounding Southwark office district.
RLAM and Blackfriars Investments had initially set an asking price of £220m, when they began marketing the trophy asset in June last year. Negotiations between the co-vendors and the German open-ended fund manager began in November. However, with strong interest in the prize investment, the achieved price has risen by £3m, offering a rental return of 5.09%.
A key attraction will have been the competitive investment yield that is secured against the strong covenant strength of a public sector tenant.
Additionally, energy performance legislation is expected to have a greater impact on commercial property values. As such the Palestra is a head of the curve, having been awarded a BREEAM ‘Excellent’ rating on its completion in 2006. To improve the sustainability of the twelve storey edifice the designers specified ‘e’ coated blue and green glazing system, and installed 14 wind turbines on the roof. Within the 27,870 sq m office building daylight sensors control the internal lighting and there is a hygienic grey water harvesting system in use in the WCs.
Located at 197 Blackfriars Road, the SE1 office rental sits directly opposite Southwark Underground Station, as well as being close Waterloo Railway Station and the Tate Modern gallery.