Japanese investor Obayashi Properties UK has acquired a 11,825sqm office block in the City of London from KGAL Investment Management.
The subsidiary of Japanese construction company Obayashi Corporation has bought 60 Gracechurch Street for an undisclosed amount.
The building was sold by a closed-ended fund managed by KGAL which acquired the fully-let asset in 2011.
KGAL said the fund’s term was due to end in 2025 and 98.5% of its investors approved the sale.
KGAL had worked with architecture firm PLP on an initial feasibility study to develop 30 storeys on the existing site.
“With a targeted approach, our transaction management team found the right buyer in Obayashi Properties UK, who recognised the potential of 60 Gracechurch Street,” said André Zücker, managing director of KGAL Investment Management.
“With this transaction, we once again prove how important in-house expertise and active asset management are in the real estate business”.
Yoshifumi Yamamoto, director at Obayashi Properties UK, said: “Obayashi is delighted to have been able to work with KGAL to have successfully completed this transaction. For us it presents the opportunity in the City we have been seeking to fulfil our strategic business plan.”
KGAL was advised by Cushman & Wakefield and BCLP. Obayashi was advised by CBRE, Linklaters and Ernst & Young.