Dutch pension fund PGGM has put Almack House, King Street, London, SW1, on the market for £80m. The move marks another stage in the fund’s retreat from the UK’s office market.
PGGM has appointed Richard Ellis and Jones Lang Wootton to find a buyer for the 9,290 sq m (100,000 sq ft) building, which is let to investment bank JP Morgan for another 15 years.
RE’s Julian Sandbach said: “PGGM is disposing of its UK property selectively, and now is the time to sell in London.” In July the fund sold the long lease on Swan Gardens and the Centre at the Circus, W1, to Standard Life for £39.5m.
Almack House’s £80m price tag reflects a yield of under 5%, which is likely to limit the number of serious bids. Market experts suggest that interest is likely to come from German and Middle Eastern funds, although UK institutions may well take a look.
EGi News 23/10/96
