A German Closed End Fund managed by Commerz Real, advised by Savills and CBRE, has confirmed the sale of The Lloyds Building to China’s leading insurance company, for £260 million reflecting a net initial yield of c. 6.1%.
The transaction represents the first purchase by a Chinese insurance company in the UK. They were advised by Gaw Capital Partners US Associate, Downtown Properties.
The Lloyds Building is home to the world’s leading insurance market and let in its entirety to the Society of Lloyds on a lease expiring in 2031.
Commerz Real purchased the building in 2005 for £231 million.
Jon Crossfield, director within Savills’ Central London team, says “This is a potentially landmark transaction, given it is the first by a Chinese Insurance company overseas. It is a high profile and confident entry to the market for them and further illustrates the dominance of overseas investors in London at present.”
Roland Holschuh, the member of the Management Board of Commerz Real AG responsible for the real estate business, says “We are delighted with the transaction and it has been a major success for our investors. The current liquidity and investor demand within the London market presented an ideal time for us to seek an exit in line with our original business plan”.
Humbert Pang, Managing Principal and Head of China of Gaw Capital Partners, comments: “As an active player in the real estate market in China, Gaw Capital Partners is seeing more opportunities to assist Chinese Institutional Investors going overseas. The key for a successful overseas investment lies in the asset management capability and relationship management in both local and overseas markets.”
Source: Savills www.savills.co.uk