London Landlords Said Readying $1.65 Billion Post-Vote Sales

Samsung Asset Management Co. plans to sell an office building in the City of London financial district for about 220 million pounds ($320 million) after the U.K. referendum on membership of the European Union, according to three people with knowledge of the matter.

Korea’s largest asset manager has hired broker Jones Lang LaSalle Inc. to offer 30 Crown Place, the headquarters of legal firm Pinsent Masons LLP, for sale later this year, the people said. Spokeswomen for Samsung and JLL declined to comment. The sale is part of more than 1.1 billion pounds of office property sales planned by London landlords in the coming months, people with knowledge of the plans said.

Brexit on Bloomberg:

Investors postponed offering large buildings for sale in the run-up to the vote because uncertainty about Britain’s membership of the EU raised concerns that prices could fall. Central London office buildings valued at about 4.9 billion pounds were available to purchase in May, compared with 8 billion pounds in November, according to a May 25 report from Great Portland Estates Plc.

“We will definitely see a bounce in investment volumes in the second half if we vote to stay in,” said Mat Oakley, the London based head of commercial research at broker Savills Plc. “There is a lot of stock being prepared for sale.”

Financial District

AEW Europe LLP, Brookfield Property Partners LP and Hines have hired brokers to sell office properties valued at about 900 million pounds in London’s main financial district, according to people familiar with the plans. Spokesmen for AEW, Brookfield and Hines declined to comment.

AEW will seek about 110 million pounds for Exchequer Court, an office building close to the skyscraper known as the Gherkin, and Hines will offer Cannon Place for a second time after a deal to sell it for 500 million pounds collapsed earlier this year, according to three people with knowledge of the matter who asked not to be identified because the plans are private.

Brookfield is offering Moor Place, an office property near the Moorgate subway station, for about 290 million pounds, Costar News earlier reported earlier this month.

Before it's here, it's on the Bloomberg Terminal.
LEARN MORE