KGAL Investment Management has sold the office building “60 Gracechurch Street”, with a total lettable space of 11,825 square metres, from one of its closed-end funds.
The buyer is Obayashi Properties UK, a wholly owned subsidiary of Obayashi Corporation, one of Japan’s largest construction companies. KGAL’s fund investors were more than satisfied, approving the sale with a 98.5 percent majority.
The office block “60 Gracechurch Street” was built in 1997 on a prominent site within the financial district of the City of London. The building was extensively modernised in 2010 before KGAL acquired it for one of its closed-end real estate funds. With the regular fund term ending in 2025, KGAL began to explore the sale of the fully let property last year. The forward-looking work of KGAL’s asset management team included the creation of an initial feasibility study for a new high rise development of more than 30 storeys, which was prepared by renowned architects, PLP. This study helped show buyers the potential for the redevelopment of the site which sits adjacent to the ‘Tower Cluster’ in the City of London, and the prospect to create substantially more floor area than the existing asset provides.
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