Deutsche Bank AG’s RREEF real estate affiliate sold an office building in central London’s St. James’s neighborhood to Azerbaijan’s State Oil Fund for 177.4 million pounds ($287 million).
The building was sold on behalf of RREEF’s Grundbesitz-Europa fund, the Deutsche Bank unit said in a statement today. The property is being leased by HSBC Bank Plc for 9.65 million pounds a year through 2023, according to the statement. Located near Buckingham Palace in London’s West End, it’s listed for historic preservation and has a modern extension to the rear.
The property was sold “to capitalize on the growing demand for London properties from overseas,” James Petit, RREEF’s head of U.K. and Ireland, said in the statement. “London is and will remain an important investment market for the fund.”
The Grundbesitz-Europa fund is seeking to buy more real estate in the U.K., according to the statement. About a third of its assets are London properties. It bought an office building in the City of London financial district for 150.3 million pounds in March, according to a statement at the time. The property is leased in part by Bloomberg LP, parent of Bloomberg News.