Rockspring Property Investment Managers has sealed the first acquisition on behalf of an investment fund of South Korea's National Pension Service. The UK investment manager, which last year received a pan-European core-plus mandate from NPS to invest EUR 900 mln across Europe, has bought 63 St Mary's Axe in east London for £24 mln (EUR 28 mln) from Threadneedle.
Rockspring Property Investment Managers has sealed the first acquisition on behalf of an investment fund of South Korea's National Pension Service. The UK investment manager, which last year received a pan-European core-plus mandate from NPS to invest EUR 900 mln across Europe, has bought 63 St Mary's Axe in east London for £24 mln (EUR 28 mln) from Threadneedle.
Located in the heart of the City of London, 63 St Mary Axe was originally built in 1989 for Eagle Star and then substantially reconstructed in 1992. The property comprises an office building totalling 72,000 sq ft (6,700 m2) and is arranged over two basement levels, ground and six upper floors. In addition, two ancillary retail units are located at ground floor level fronting Houndsditch. The property is currently multi-let to nine tenants at an average office rent of around £28 per sq ft.
The deal is in line with NPS' shift in strategy to higher risk acquisitions. Andie Kang, real estate investment manager at NPS, recently told PropertyEU that the institution is looking to move up the risk curve as increased competition in mature markets continues to put pressure on yields. With a strong focus on cash flow generation, capital preservation and active asset management, the NPS European Property Fund is targeting returns in excess of 10%.
Robert Gilchrist, Chief Executive of Rockspring, said: 'We see this as an excellent first investment for the programme and we will continue to source acquisitions across Europe, particularly in our key target sectors of office and retail.' Rockspring was advised by King Sturge and GVA Grimley acted for Threadneedle.
