Allianz’ Real Estate Unit Bets on London with Purchase of Office Buildings for $539M
Allianz SE’s real estate unit will take a majority stake in a portfolio of buildings owned by British Land Co. in London’s virus-roiled West End district.
The insurance giant has agreed to pay 401 million pounds [$539 million] for a 75% interest in the office properties located in Marylebone, according to a statement Wednesday. The deal, which includes 10 Portman Square, Marble Arch House and York House, is due to complete in January.
It is the latest sign of global investors willing to bet on the long-term resilience of the world’s biggest business districts even as the coronavirus pandemic has reduced their appeal. Deals for West End buildings have picked up in the second half with investors seeking out buildings with long leases, lured by returns that dwarf those available from other safe haven assets including government bonds.
Property developer British Land agrees £401m sale of West End offices
British Land has agreed the £401m sale of West End offices.
British Land has agreed the £401m sale of a 75 per cent stake in three buildings in the West End to Allianz Real Estate.
The portfolio includes three buildings; 10 Portman Square, Marble Arch House and York House, all of which are in Marylebone.
As a result of the sale British Land will form a new joint venture with Allianz, with British Land’s interest at 25% and Allianz’s at 75%. British Land will continue to manage all three buildings and will receive an asset management fee.
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Commercial property giant British Land has sold a three-quarters stake in three London West End buildings to asset manager Allianz Real Estate for just over £400million.
It also agreed to form a joint venture where the FTSE 100 firm will continue to manage the buildings based in Marylebone - and collect an asset management fee, though it will only control a quarter of the new partnership.
The three premises are primarily office space and have a combined 310,000 square feet between them and were valued at more than £500million in late September.
British Land runs the West London office and retail development Ealing Broadway