Union Investment Real Estate has completed the sale of its share in the City of London’s tallest tower.
The German open-ended fund manager, formerly known as DIFA, sold its share in the Pinnacle tower for £200m to Arab Investments in a deal which will allow the next phase of the development to proceed.
Khalis Affara’s Arab Investments set up a consortium of Middle Eastern banks and institutions known as Pinnacle and renamed the 60-storey tower which had been previously known as Helter Skelter. Arab Investments has set up the world’s largest Shari’ah-compliant property fund to speculatively build the 945ft tower.
Dr Frank Billand, member of the board of directors at Union Investment Real Estate, said: ‘Following the receipt of planning permission from the City of London last year, the sale has now realised the increased value of the property in the Union Investment fund.
‘Union Investment will continue to have an ongoing commitment to the London market, which currently includes our co-investment in an office development scheme in Paddington and our Austral House development in the City, and will look at other investment opportunities in the future.’