Malaysian sovereign wealth fund Permodalan Nasional Berhad has withdawn the £400m sale of Linklaters’ City headquarters at One Silk Street, EC2.
PNB instructed Knight Frank in September to sell the 456,752 sq ft office building, pitching it as a potential 38-storey mixed-use redevelopment opportunity.
However, the Malaysian fund has curtailed talks with prospective buyers and decided to place the asset in a unit trust fund.
The asking price reflected a net initial yield of 4.71%. Linklaters occupies the entire building on a lease expiring in September 2026.
PNB also toyed with selling the former Olswang HQ at 90 High Holborn, WC1, at the end of last year and instructed CBRE to seek offers in excess of £195m for the 186,000 sq ft office building. However, the asset has also been pulled and will be placed in a unit trust fund.
PNB owns a 40% stake in Battersea Power Station, SW8. Its three other London assets are:
One Exchange Square, EC2: The European Bank of Reconstruction and Development’s headquarters is located in the Broadgate office complex, adjacent to Liverpool Street Station. EBRD occupies most of the 490,000 sq ft building on a lease expiring in 2022. PNB acquired the building from KanAm in 2012 for £395m.
Aviation House, Kingsway, WC2: The 164,200 sq ft property in Holborn is currently let to various government departments, including the Food Standards Agency, Ofsted, and the Medical Research Council. Retail space is let to Sainsbury’s and Boots. PNB bought it from a private Chilean investor in January 2015 for £155m – a yield of 5.25%.
PNB House, 77 Queen Victoria Street, EC4: A 27,000 sq ft office building let to multiple tenants including PNB, which acquired it from CBRE Global Investors in 2014 for around £26m.
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