The London King’s Reach Tower has been bought by Saudi firm Jadwa Investment and European investor CIT for £60 million.
The companies are planning to spend an additional £500 million on investing in the UK property sector in the future.
Fadi Tabbara, Jadwa’s chief investment officer, said: “It’s a great location, it’s overlooking the Thames with wonderful views. The pound exchange rate is low, which makes investment in the UK inviting, and the legal structure is simple and transparent”.
Tabbara explained the appeal of the UK market to Gulf investors: “For us, London is the capital of the world. It’s a lot closer than the US, and even the retail sector is often in tune to Arab culture”.
The 31-storey tower is currently unoccupied and the buyers are planning on spending a further £200 million on the building. They hope an improvement in the economy will solve the problem of the lack of tenants in the near future.
The purchase price of the tower, situated on London’s south bank, also included a nearby podium building and planning consent for redevelopment, according to The Financial Times.
The structure was bought for a quarter below the price it was sold for in 2006.