Japanese firms Sotetsu Urban Creates and Yasuda Real Estate have made their UK market debut with the acquisition of a stake in a London office asset from Lendlease.
The investors have acquired a 20% interest in the Lendlease Moorfields Investment Partnership which holds 21 Moorfields office building let to Deutsche Bank on a 25-year lease. Lendlease will retain a 5% interest in the investment partnership and continue as the investment and asset manager.
Lendlease said the stake sale is in line with its strategy to “recycle and redeploy investment capital to fund future growth”, while introducing “two new strategic partners to its international investment management platform”.
Last year IPE Real Asset reported that LendLease was retreating to its Australian base and selling off its myriad of projects in the UK, US and Asia.
Justin Gabbani, CEO of investment management at Lendlease, said: “This transaction sees Lendlease introduce new capital partners to the UK market, and highlights the continued appeal of high-quality, well located and sustainable office buildings.
“It also builds on our network of global partners as we increase scale across our international investment management platform.”
Makoto Sato, president and representative director for Sotetsu Urban Creates, said: “Sotetsu Group is actively expanding overseas, and this investment has enabled it to broaden its business area.
“We are excited to partner with Lendlease via 21 Moorfields, with its central location, sustainability credentials and secure income stream.”
Hiroyuki Mori, EVP and representative director for Yasuda Real Estate, said: “This marks a significant step for Yasuda as we enter the UK market. The combination of resilient returns, strategic location, and trusted partners makes this an excellent long-term investment aligned with our global strategy.”
UK government minister for investment Poppy Gustafsson said: “Major investment in our real estate market like this is central to getting Britain building again and shows our plan for change is working.
“With professional business services identified as a key growth sector in our upcoming industrial strategy, we’re helping to attract and secure investment, and delivering long-term, stable growth that works for businesses and workers across the UK.”
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