M&G Real Estate has bought the freehold of a London office asset from Legal & General for £92.5m (€127.2m).

The freehold of Bloomberg Place in the City of London was sold by L&G, which has held the site since 1962.

Walbrook Square, a subsidiary of Bloomberg, holds a long leasehold of the site, which will house the company’s European headquarters. 

The 750,000 sqft office development is due for completion next year.

Shailendra Shah, director of investment management at M&G Real Estate, said: “We have significant capital to invest in deals of this nature for our long income funds.

“Investments of this scale and quality in the heart of the City of London rarely come to market, particularly those with such a strong covenant from a long-term leaseholder.

“With a tenant committed in this structure, this deal will provide long-term, stable income growth for our investors.”

Legal & General, which obtained planning consent for the site’s redevelopment in 2006, sold its long leasehold to Bloomberg in 2010.  

Michael Barrie, director of fund management at Legal & General Property, said: “The sale of the freehold to M&G Real Estate therefore brings a successful conclusion to our ownership of the site, during which the property has performed incredibly strongly for us, including delivering an annual return of 18% over the last five years.”