LaSalle Investment Management, acting on behalf of Korea’s National Pension Service (NPS), has exchanged contracts to acquire Plumtree Court in London, the UK. Completion of the acquisition is set to take place in January 2019. The asset compromises 826,008ft² (76,739m²) of the highest specification office and ancillary accommodation arranged over basement, lower ground, mezzanine, ground, upper ground, eight upper workplace floors and a landscaped roof garden. Plumtree Court will be the new European headquarters of Goldman Sachs in London from mid-2019 when it is expected to take occupancy of the premises with a 25-year lease on the building with a break option after 20 years, and the ability for Goldman Sachs to extend the lease beyond the initial term. The purchase price was not disclosed.
Plumtree Court is a landmark and extremely high-quality building and can be considered ultra-prime. It is very well located in the CBD and in an area which has undergone significant development in recent years attracting a diverse range of global occupiers including Amazon, Deloitte, BAML and JP Morgan. As such, the property has very strong fundamentals in terms of location, quality of build and long income potential.
Scott Kim, the Head of Global Real Estate at National Pension Service said: “This is one of the finest office buildings in London which will be let to an exceptional tenant for 25 years. We are excited to re-enter into London market with this high-quality asset which is well-aligned with our defensive strategy and will be an excellent addition to our already strong core portfolio.”
Julian Agnew, CIO for the UK at LaSalle Investment Management, added: “We are very pleased to have acquired this prime asset in one of the best locations in London. Given our long-term relationship with the client, we understand their investment priorities and as such are able to match this with assets which will provide long-term, stable income return. We have seen continued interest in London for prime assets from overseas investors and our access to the local market, led by Gary Moore and his team, means that we are able to source assets which are in line with their strategy and are driven by long-term themes of demographics, technology, urbanisation and environmental change (DTU+E).”
Gary Moore, Head of International Accounts at LaSalle Investment Management, said: “This is a high-quality asset and a good strategic fit for our client. The acquisition was structured with a bespoke solution that enables us to generate enhanced gross returns from a core asset.”
