LaSalle has exchanged contracts on Plumtree Court (Fleet Building) on behalf of Korea’s National Pension Service.

The completion of the acquisition is set to take place in January 2019.

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 commented: “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, said: “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, added: “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.”

The new building is comprised of 826,008 sq ft (76,739 sq m) 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.

LaSalle was advised by JLL on this acquisition.

I was the Assistant Resident Engineer on the construction of Fleet Building on Farringdon Street in the late 1950's. At that time it was a major new development in the City of London and as a government building for Post Office telecommunications, it was designed and built by the Ministry of Works.
The basement construction entailed deep excavations with mass concrete retaining walls of between 6ft and 9ft thickness built in timber supported trenchworks. The concrete having 20% pulverised fuel ash PFA replacing an equivalent amont of cement to lower the temperature of hydration during curing, to reduce the risk of cracking, as the basement had no external waterproofing protection. During that construction phase, we exposed two mass burial pits of unknown origin in the central ares of the site and some of the original Fleet River wharfside brick built storage buildings with brick barrel vaulted roofs, alongside Farringdon Street on the SE side of the site. They were just clear of the new works and were left as found.

Ernest Marples, the Post Office Minister laid the foundation stone in the reception area on Farringdon Street in either 1958 or 1959. I was present. A large sealed tube was built in immediately under the foundation stone. It had examples of the telephone equipment in use at that time along with other artifacts and I think a newspaper. The building progressed to higher levels and I left the site in late 1959.
The Resident Engineer was a civil engineer Mr White, who had previously been engaged on the building of the experimental Ship Tank at Feltham. From memory, I think the contractor was Turriff.

Nine Dorothy Annan ceramic panels on the Fleet Building have been granted Grade II listed status after English Heritage says the murals, which show telecommunications technology, are of “historic interest” to the telecoms industry. Read the full story in The Telegraph: http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/8909231/Rare-murals-hinder-Goldman-Sachs-expansion-in-London.html

New in Buildington!