(Bloomberg) -- Land Securities Group Plc has agreed to sell the building that will house Deutsche Bank AG’s new London headquarters at a sharp discount to its valuation. 

Landsec has exchanged contracts for the sale of the office development with an investment vehicle managed by Australia’s Lendlease Corp. for £809 million ($917 million), according to a statement Wednesday. That’s 9% less than the March valuation but promises to yield £145 million of development profit. 

The UK’s commercial real estate market is in flux as rising interest rates reduce the spread between prime property yields and government bonds. But new buildings with top environmental credentials and long index-linked leases have outperformed other property types as investors seek a sanctuary from runaway inflation. 

Deutsche Bank has signed a 25-year lease for the 568,500 square foot property and will pay rent of £38 million a year. Landsec still has to finish the development, which is slated to complete in the first three months of next year, according to the statement. 

“The scale of this joint investment in the City of London reflects the global appetite for premium and sustainable office assets in the world’s key gateway cities,” Neil Martin, Chief Executive Officer for Europe at Lendlease said in the statement. 

Rothesay Life is financing the deal with a 10-year loan, according to the statement. The transaction is expected to close in the next week and will be used by the developer to pay down debt. Australia’s TCorp is partnering with Lendlease on the deal. 

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