Hermes completes £100m of sales exchanged pre-Brexit

The investment management arm of the BT Pension Scheme has announced the completion of three deals, including one City of London transaction valued at £83.5m, which were originally negotiated before the EU referendum.

Hermes Investment Management, the investment management arm of the BT Pension Scheme, has completed more than £100 million ($131 million; €120 million) of sales which were exchanged before the EU referendum.

The London-based firm has inked three deals across the UK that were negotiated prior to the June 23 Brexit decision.

Hermes sold Cheapside House (pictured), in London, for £83.5 million to Nan Fung, a Hong Kong property investor and developer. The property was bought by Hermes in a joint venture with Canadian Pension Plan Investment Board (CPPIB). It was reportedly bought by the partnership for £70 million in 2014.

The building, which provides 69,500 square feet of office space and 10,700 square feet of retail space, is located in the heart of the City of London and within close proximity of St Paul’s Cathedral. A spokesman for Hermes said the deal represented a net initial yield of 5.2 percent and a capital value of £1,028 per square foot.

The two other properties sold by Hermes were an industrial estate in the West Midlands for £12.63 million, which was sold to an undisclosed buyer, and a retail property in Kent, south east of London, for £4 million.

Chris Taylor, head of private markets at Hermes, said: “The sale of these three assets is an excellent result as they will allow us to diversify our portfolio and invest in new acquisitions where we believe additional value can be added.”

Established in 1983, Hermes managed £23 billion of assets as of December 31, 2016. Of that amount, 31.1 percent was real estate, the second-largest component of its portfolio after equities.