King Sturge advised on Willis 'credit-crunch opportunity'

Property adviser King Sturge said it advised St Martins, the property investment vehicle of Kuwait's sovereign wealth fund, on its recent acquisition of the iconic Willis building in London.

As reported by PropertyEU, St Martins agreed to acquire the building for £400mln (EUR 500mln) from British Land. The fourth tallest tower in the city of London, the Willis building was designed by the architect Norman Foster and developed by British Land. King Sturge said the acquisition would yield a value of 5.7% per annum.

King Sturge noted the purchase had taken advantage of the credit crunch and the dramatic fall in prices of up to 20% seen over the last year. These factors combined enabled St Martins to acquire the building at a 'significant' discount from its original value. The off-market nature of the deal, avoiding competition for the asset, also helped to keep the price down, King Sturge said.

'St Martins has struck at the right time - taking advantage of the quieter market conditions to acquire the Willis Building, which is a trophy asset on the London skyline,' said King Sturge head of City investment James Beckham. 'Undoubtedly, foreign investment in the UK, much of it through sovereign wealth funds, will be one of the main lifesavers to see London through the market downturn.'