London-based private equity real estate firm Rockspring Property Investment Managers has purchased a pair of central London offices for more than £265 million ($435 million; €294.5 million) on behalf of the National Pension Service of Korea (NPS).
The firm was appointed by the Korean pension fund in September to invest in central London offices as part of a wider strategy to deploy $3 billion directly into prime commercial real estate in London, New York, Tokyo and Sydney in 2009.
Rockspring has purchased an office at 88 Wood Street in the City of London from ING Real Estate Investment Management for £183 million and a 50 percent stake in 40 Grosvenor Place, in London’s West End, from clients of Invista Real Estate Investment Management for approximately £85 million.
The total income from the assets is about £12.7 million and the average unexpired lease term is more than 10 years. Rockspring used a £91.5 million loan from German bank Bayern LB, to help finance the deals.
Robert Gilchrist, chief executive of Rockspring and fund director for the separate account, said: “These two properties clearly demonstrate the type of assets which we will continue to source on behalf of NPS, as they benefit from a prime location and are well let to major tenants.”
He added that the firm aims to announce further investments made on behalf of NPS “shortly”.