The Wall Street bank stated that it had agreed to sell and lease back Plumtree Court in a deal struck with Korea’s National Pension Service– which is acquiring the building via LaSalle Investment Management.
Goldman will take a 25-year lease on the 10-storey building, stated the bank. There will be a break option after 20 years. The staff is expected to move from its existing offices in the capital next year.
Richard Gnodde, chief executive of Goldman Sachs International, stated: “The development of Plumtree Court and our signing of a long-term lease demonstrates our continued commitment to London and our European operations more broadly.”
Scott Kim, head of global real estate at National Pension Service, described Goldman’s building as “one of the finest office buiildings in London”.
JLL advised the buyer on the deal. CBRE advised Goldman Sachs.
Asian institutional investment in London real estate has picked up markedly since the UK’s vote to leave the European Union in mid-2016. Buyers have found more attractive yields in the UK than in their home markets, on top of which the weakened pound has made properties cheaper.South Korean buyers had been missing from the market for several years but have picked up several properties since the tail-end of 2017.
Banks’ approaches to managing real estate in London has been under increased scrutiny since the Brexit vote, as firms try and work out whether they need to move jobs and resources to other locations in Europe.
News that Goldman may sell Plumtree Court had broken out earlier this year.