KBC purchases EUR 128m office building in the City of London

European banking group KBC Group has acquired an office property in Old Broad Street in the City of London from UK pension provider Aegon Scottish Equitable. The 11,355 m² property was sold for £ 101.5mln (EUR 128.5mln) and reflects a net yield of 5.5%. KBC was advised by Drivers Jonas.

According to a statement from the company, KBC Group bought the offices as part of its strategy to establish a central hub in London. The building houses over 600 of KBC's UK employees in corporate banking, investment banking and asset management.

Cameron Marr, general manager at KBC Bank, commented: 'We have been at 111 Old Broad Street since November 2003 and it is very much the UK heart of the Corporate and Investment Bank.  As our footprint has grown across the UK we are keen to position ourselves for the long term. This deal represents our confidence in, and commitment to, the UK market and we are proud to be aligning our intentions with a solid investment.'

Guy Slocombe, investment partner at KBC's adviser Drivers Jonas, said: 'The acquisition of this grade A City asset concludes a lengthy period during which our client has carefully watched the market and considered the most appropriate time for their business to buy their City HQ. While values for product of this nature have appeared stable this year, the price paid reflects a significant discount on previous valuations.'