A Korean investment company has snapped up a 15-storey office building in the City for £200.5 million.
Korea Investment & Securities has taken advantage of the weakened pound and attractive valuation of UK properties by buying the grade A tower at 70 Mark Lane.
It is the first property investment by the South Korean securities company in London, and is expected to generate an annual yield of around 6%.
The office building was constructed in 2014 by Japanese developer Mitsui Fudosan. It has been used as the headquarters of Switzerland’s Zurich Insurance Group and Miller Insurance Services, a UK insurance broker.
The transaction was arranged by London’s Knight Frank Investment Management, which has worked for other South Korean investment companies in two recent property acquisitions in Scotland and Dublin, Korea Investors reported.
Korea Investment’s other overseas purchases include eBay’s Silicon Valley campus and GSK’s Philadelphia headquarters.
The relative under-performance of the British real estate market compared with other European cities has raised the attractiveness of UK office buildings.
Last month, Mirae Asset Financial Group bought a prime office building in the City of London from the Blackstone Group for £340 million, betting on a recovery in high-end London office buildings from the Brexit-induced slowdown.
Mirae’s brokerage arm, Mirae Asset Daewoo, is looking for an additional property investment target in London with an increased capital base, MoneyToday said.