German investor KGAL makes £56m return to London
German asset manager KGAL has plunged back into the London market with the £56m acquisition of an office near Leicester Square, from Legal & General Investment Management.
The building, at 101 St Martin’s Lane, W1, contains about 47,600 sq ft of leasable office space, and traded at a 5.1% net initial yield.
It marks a return to London for KGAL, which has held off investing in the capital amid Brexit-related uncertainty in recent times, EG understands, despite holding two separate UK office assets.
German asset manager KGAL has plunged back into the London market with the £56m acquisition of an office near Leicester Square, from Legal & General Investment Management.
The building, at 101 St Martin’s Lane, W1, contains about 47,600 sq ft of leasable office space, and traded at a 5.1% net initial yield.
It marks a return to London for KGAL, which has held off investing in the capital amid Brexit-related uncertainty in recent times, EG understands, despite holding two separate UK office assets.
Managing director Andre Zucker said: “We are convinced that now is a good time to invest in London again.
“101 St Martin’s Lane, a light-filled office building, is not only promising because of London’s market potential, but it also impresses with its location in the heart of trendy Covent Garden district.
“We are confident that our experience in the London market and our active management approach will enable us to generate an attractive return for our clients.”
Built in 1991, the building is mainly made up of grade-A office space together with a ground floor retail unit. It has a mix of eight tenants from different sectors.
KGAL, which manages more than €15bn of assets, bought it via its fund Core 4, an open-ended Luxembourg fund investing in ESG-friendly buildings.
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