KanAm Grund KAG sold two London office buildings to investment fund Permodalan Nasional Bhd., a week after the German property fund said it would liquidate its 3.92 billion-euro ($5.14 billion) Grundinvest fund.
PNB, Malaysia’s biggest state asset manager, bought the European Bank for Reconstruction and Development’s head office next to Liverpool Street train station and an office building at 90 High Holborn for an undisclosed price, KanAm said today in an e-mailed statement.
“The particular attractiveness of these two trophy buildings is explained by their prominent tenancy and their good location in the City of the London and Midtown,” Hans-Joachim Kleinert, managing partner of Frankfurt-based KanAm, said in the statement.
KanAm’s liquidation of the Grundinvest fund will make it the largest German mutual property fund to be wound up after failing to raise enough money to meet investor withdrawals. The fund’s other London assets are Thomson Reuters Plc’s headquarters in Canary Wharf and Deutsche Bank AG’s U.K. base near the Bank of England.
PNB, based in Kuala Lumpur, has more than 40 billion pounds under management, according to the statement. Earlier this year, it bought One Silk Street in London, where tenants include law firm Linklaters LLP.