New Offices for Rent in London: PNB Acquires Two Properties for £500m
Malaysian fund management company PNB has acquired offices for rent in London through two properties from KanAm.
Permodalan Nasional Berhad now owns One Exchange Square and 90 High Holborn.
German fund manager KanAm have confirmed they have sold two landmark offices for rent in London to Permodalan Nasional Berhad in a deal thought to be worth around £500 million.
The Malaysian fund management company have purchased One Exchange Square in the City’s financial district and 90 High Holborn for an undisclosed sum. The buildings are currently home to the European Bank for Reconstruction and Development and law firm Olswang Solicitors respectively.
In January it was reported that PNB was on the verge of acquiring three major offices for rent in London as part of the liquidation of KanAm’s Gruninvest firm, however the third building, which is believed to be Thomson Reuter’s HQ at Canary Wharf, is thought to be no longer for sale.
The latest acquisitions mean One Exchange Square and 90 High Holborn will now join 1 Silk Street in PNB’s rapidly expanding London office portfolio. The latter was purchased by PNB from US investor Beacon Capital for around £350 million earlier this year.
“The particular attractiveness of these two trophy buildings is explained by their prominent tenancy and their good location in the City of the London and Midtown,” commented KanAm in a statement.
During the negotiations, KanAm was advised by Knight Frank. Head of European Investment at the property firm Andrew Sim commented: “The harnessing of fresh international capital is crucial for the health of the European investment market and fundamental to the success of selling assets of such importance.“
The announcement comes in the same week that CBRE reported it is sovereign wealth funds and cash-positive pension funds from Asia and the Middle East that are driving the London office market forward.
Executive director for Central London Capital Markets at CBRE Simon Barrowcliff said: “The fundamental drivers of growth in cash-positive pension funds and sovereign wealth funds are expected to continue and capital from these sources will continue to enter and power the Central London property investment market. Legislative change within Asian pension funds to allow investment in foreign real estate is also likely to gain momentum, and expectations for the commodity market remain strong.“
This is exciting news for the London office market. Competition over offices for rent in London is high and the more properties which are invested in throughout the capital can only mean positives steps for business and for London.