International law firm Dechert LLP advised Southpoint Limited Partnership, the joint venture between Malory Clifford’s Blackfriars Investments and Royal London Asset Management, on its successful sale of Palestra, the iconic South Bank office building currently let to Transport for London (TfL), to Deka Immobilien for £223 million. Dechert has advised in connection with the Palestra site since its original acquisition by Blackfriars in 1999.
The building, designed by Sterling Prize Winner Will Alsop OBE, was completed in 2006 to provide 27,919 square meters (300,517 square feet) of Grade A office accommodation, which is let in its entirety to TfL. Shortly after completion in 2007, the building received RIBA awards for both the London and National categories.
As part of the transaction, the parties have negotiated a 10-year extension to the existing lease to TfL, committing them to the building until at least 2036. TfL installed a hydrogen fuel cell within the building, the first of its kind in Europe which is aimed at reducing the CO2 emissions by 40%. This, together with other energy saving initiatives, including roof-mounted wind turbines and solar panels, is set to make Palestra a leading example of sustainability in the commercial environment.
Palestra was the first significant development to be undertaken in this location which has now established itself as a key office location. The South Bank is currently witnessing further substantial development activity including the imminent completion of the Shard, Europe’s tallest building at 1,016 feet and the extension to the Tate Modern, which is due for completion in 2016.
The Dechert team advising Southpoint Limited Partnership was led by long term relationship partner William Fryzer, assisted by associate Sophie Ogilvie. Simmons & Simmons, led by partner Nick Jones and assisted by senior associate Faisal Nisar, acted for Deka. Eversheds senior associate Mark Watson acted for Transport for London on the lease re-gear.
DTZ represented Blackfriars Investments and Royal London Asset Management, Savills represented Deka Immobilien and Drivers Jonas Deloitte represented TfL.
