KanAm sells Deutsche Bank's London HQ

KanAm Grund has made a major step forward in the EUR 6 bn liquidation of its open-ended KanAm grundinvest Fund with the sale of Winchester House - one of its most distinctive properties in London.

The office scheme, home to Deutsche Bank's headquarters building, is understood to have been acquired by China's sovereign wealth fund, CIC. Financial details were not disclosed. However, UK press reports put the deal price at £250 mln (EUR 312 mln).

It is the seventh large asset sold by the open-ended fund since announcing its liquidation in late 2011. In a statement, KanAm Grund said it has divested some EUR 1.9 bn worth of properties and expects to close a further divestment by the end of the year.

In a statement, Kanam said it is on track to meet its target to divest its entire 51-property strong portfolio valued at EUR 6.3 bn by the end of 2016.

Located in the heart of the City of London, Winchester House was acquired by KanAm in March 2003 and is believed to have less than 10 years left on its lease. It provides a total of 28,800 m² of space.

CIC made its entry into the UK property market in 2009 with the purchase of an interest in Songbird Estates, the owner of Canary Wharf.

It is the latest deal closed by KanAm Grund with an Asian sovereign wealth fund. Earlier this year, the Frankfurt-based fund manager divested One Exchange Square and 90 High Holborn in London to the Malaysian investment fund Permodalan Nasional Berhad (PNB) for a value of around EUR 570 mln.

One Exchange Square, located in London's City financial district, houses the headquarters of the European Bank for Reconstruction and Development, and offers 35,650 m² of usable space let to 2022.

90 High Holborn, situated between the City and the West End, is leased to UK law firm Olswang Solicitors. Built in 2002, it offers 17,000 m² of fully let office accommodation. Some 200 m² of retail space is leased to Starbucks Coffee and telecoms provider Orange. Following the deal, Grundinvest's UK portfolio has been reduced to Deutsche Bank's UK base on London Wall and Thomson Reuters’ office block in Canary Wharf.