Greenwich Peninsula Regeneration Ltd ("GPRL"), the joint venture between Lend Lease (Europe) Ltd and Quintain, announces the sale of Pier Walk to Deka Immobilien GmbH, a subsidiary company of the DekaBank Group, the largest provider of open-ended property funds in Germany. The sale price of £97.1m represents a yield of 5.9%.

The retail units within the building will be leased back to GPRL at no cost for 125 years.

The offices, totalling 196,000 sq ft, were pre-let on a 20 year lease to Transport for London, which took occupation in August last year and now accommodates 1,800 of its employees within the building. Quintain and Lend Lease each held a 50% interest in the asset, which they jointly developed and let.

Under the terms of the deal, GPRL retains control of the seven retail units on the ground floor of the building, five of which are under offer to major retailers and restaurant brands, enabling the partners to progressively build the retail brand of this emerging destination.

Nick Shattock, Deputy Chief Executive of Quintain, commented:
"Following the successful sale of The O2 last year, this disposal at a price above valuation to Germany's largest provider of open-ended property funds is another resounding endorsement of the value to be realised at Greenwich Peninsula, even in the early stages of this transformational regeneration scheme.

"With footfall to the Peninsula currently at around 7 million people per annum and increasing every year as the regeneration takes shape, retention of the retail units will enable GPRL to drive increasing revenue from the scheme as we develop and open more commercial and residential buildings."

Richard Cable, Lend Lease's Managing Director for Development EMEA, added:"Deka's purchase is testament to the quality of development at Peninsula Central, which has established itself as a business district for London and a thriving riverside community in less than three years. We are currently progressing designs for a third Grade A office building of circa 250,000 sq ft with a view to securing pre-lets.

"Pier Walk has industry-beating environmental credentials and is two minutes' walk from the tube, the river, the park and the world's most popular entertainment venue. With the additional benefit of a 20 year lease to a regulatory authority, this is an exceptional investment for Deka that will deliver strong, stable returns."

Savills represented Quintain. Deka was advised by CBRE.