Rockspring Property Investment Managers LLP announces that, on behalf of NPS European Property LP, it has acquired 63 St Mary's Axe, London EC3 for £23.75 million (approx. 27.6 million) from Threadneedle.
Located in the heart of the City of London, 63 St Mary Axe was originally constructed in 1989 for Eagle Star and then substantially reconstructed in 1992. The property comprises a self-contained office building totaling approximately 72,000 ft² (approx. 6,700 m²) and is arranged over two basement levels, ground and six upper floors. In addition, two ancillary retail units are located at ground floor level fronting Houndsditch. The property is currently multi-let to nine tenants at an average office rent of circa £28/ft².
This transaction is the first acquisition made by Rockspring for NPS European Property LP (previously called NPS European Real Estate Value Fund), a pan-European discretionary core plus mandate on behalf of the National Pension Service of Korea. With 900 million of acquisition capacity, it invests across all commercial property sectors, from mature western European markets through to the more emerging markets of Central Europe. With a strong focus on cash flow generation, capital preservation and active asset management, it is targeting returns in excess of 10%.
Robert Gilchrist, Chief Executive of Rockspring, said: "This well-located asset let off low average rents offers immediate asset management opportunities and potential for fuller refurbishment prospects in the medium term."
"We see this as an excellent first investment for the program and we will continue to source acquisitions across Europe, particularly in our key target sectors of office and retail."
Rockspring was advised by King Sturge and GVA Grimley acted for Threadneedle.