Union Investment has bought a central London office asset from Goldman Sachs and Greycoat.

The Hamburg-based real estate investment manager said its open-ended real estate fund UniImmo Europa has paid an undisclosed sum to buy Procession House at 55 Ludgate Hill.

According to Media reports, Union Investment is buying the 10,200sqm multi-tenant property for around £140m (€157m). Some 92% of the space is already let.

The merchant banking division of Goldman Sachs and Greycoat bought the asset in July 2018 from Legal & General for £69m.

In February last year, the duo secured £69.1m loan from M&G Investments to help finance the acquisition and refurbish the asset. 

Adam Irányi, head of investment Europe at Union Investment real estate, said: “The British office market has performed very robustly in recent years despite the economic uncertainty in the wake of the Brexit referendum and the coronavirus pandemic.

“London is set to remain one of the world’s leading business centres, with an attractive office market. Because of its strong position, the London office market will be among the first to see rent growth when the current crisis is over.”

Chris Semones, Goldman Sachs Merchant Banking Real Estate MD, said: “Collectively, we executed on a value-add strategy to comprehensively redevelop the building to offer new Grade A office space which we have successfully pre-leased to two high-quality tenants.

“Now that the asset has been stabilised we are delighted to be transacting with an investor of Union Investment’s calibre.”

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