German asset manager KGAL Investment Management has returned to London's commercial property markets with the acquisition of an office building at 101 St Martin's Lane in the West End.
The asset, which was acquired from Legal & General Investment Management for £56 mln (€66 mln), offers around 47,600 ft2 (4,400 m2) of leasable space.
André Zücker, managing director and head of real estate of KGAL said: 'We continually monitor market conditions and we are convinced that now is a good time to invest in London again.
'101 St Martin’s Lane, a light-filled office building, is not only promising because of London's market potential, but it also impresses with its location in the heart of trendy Covent Garden district. We are confident that our experience in the London market and our active management approach will enable us to generate an attractive return for our clients.'
Built in 1991, the Grade A office building offers contemporary office space together with a ground floor retail unit. The building has a broadly diversified tenant mix currently consisting of eight tenants from different sectors. The purchase price of the property was £56 million with a net initial yield of 5.1 per cent.
KGAL Core 4, an open-ended Luxembourg fund, invests in European real estate in accordance with ESG criteria and with a clear focus on prime locations.
'This is the fifth property we have acquired for our European Core fund. KGAL Core 4 stands out from other ESG funds with its special focus on social aspects,' said Christian Schulte Eistrup, head of KGAL’s international institutional business.
KGAL was advised by Cushman & Wakefield, BCLP, AKD and Hollis, among others. Knight Frank advised Legal & General.
