The executive office buildings are occupied by prestigious names in finance and the media sectors, such as Deutsche Bank and Thomson Reuters.
Following a decision by KanAm Grund to re-focus on growing its portfolio within the Euro-zone, the fund manager has put the blue-chip tenanted office investment properties on the market, appointing the agent Knight Frank LLP to conduct the sale.
The stellar portfolio of central London offices was assembled by KanAm between 2003 and 2007. The fund’s investment selection criteria focused purely on high quality buildings in core locations, let to high calibre tenants.
A great example of this type of high value / low risk property is the 10 storey Winchester House, which is home to Deutsche Bank’s UK headquarters and three trading floors.
Winchester House (pictured), the award-winning EC2 office building and City landmark is situated at the junction of London Wall and Old Broad Street. The portfolio being marketed by Knight Frank also contains the Canary Wharf offices at 30 The South Colonnade, Canary Wharf E14 that are rented by Thomson Reuters for its European HQ. Olswang, the top law firm has its HQ offices in Midtown at 90 High Holborn in WC1, and the quasi-governmental European Bank for Reconstruction and Development (EBRD) occupies offices in Broadgate at One Exchange Square, EC2.
KanAm Grundinvest Fonds is a private real estate investment company based in Frankfurt, which was founded in 2000. The institution has more than €6bn (£5.3bn) of property under management and has earned a reputation for buying prime commercial assets in Europe’s most active property markets.
KanAm stated that “The current huge inflows of international capital chasing prime central London real estate” together with “the renewed appetite for larger volume investments and the extraordinarily trophy assets would present a perfect timing opportunity for such a disposal.”
Sources indicated that the property sales were also occurring as result of a change in German finance legislation, which requires open-ended funds to dispose of assets and to concentrate on Euro-denominated markets.