Korean newcomer invests EUR 206m in London office asset

Korean public-sector pension fund POBA has entered the London real estate market with the acquisition of a 21,160 m² office property in the City financial district for £165 mln (EUR 206 mln). The vendor was Apollo Real Estate.

CBRE Global Investors carried out the purchase of Thames Court, which overlooks the River Thames, on behalf of its mandate with POBA (Public Officials Benefit Association). ING Real Estate Investment Management, now part of CBRE Global Investors, won the mandate in June 2011 to invest £170 mln for POBA in the central London office market.

The freehold City office building provides office, retail and storage accommodation over basement, lower ground, ground and four upper floors. The office space is let to Cooperatieve Centrale Raiffeisen Boerenleenbank BA ( part of Dutch banking group Rabobank Group) and Royal Bank of Canada. The retail unit is let to Etsu Café.

Gary Moore, senior director and head of international separate accounts at CBRE Global Investors, said: 'We were delighted to be appointed last year to manage POBA's separate account and this is a significant acquisition for their first step into the UK investment market'.

CBRE Global Investors was advised by Savills and GM Real Estate acted for Apollo Real Estate.