News

Goldman agrees sale and leaseback of new London HQ

News

Louise Dransfield

23 August 2018

Investment/finance, Offices

London

Goldman Sachs' City Headquarters, Plumtree Court, EC4

Goldman Sachs has agreed the £1.2bn sale and leaseback of its new European headquarters in London with South Korea’s National Pension Service.

NPS fought off competition from fellow South Korean pension fund Hanwha; the investment firm of Europe’s richest man retail mogul Amancio Ortega; and CK Asset Holdings, the company backed by the family trust of Hong Kong businessman Li Ka-shing, to acquire the US banking giant’s new headquarters.

The deal agreed gives Goldman Sachs, which will move into the 826,000 sq ft Plumtree Court, EC4, office block in the middle of next year, a 25-year lease on the building, with the option to break it after 20 years and the option to extend the lease beyond the initial term.

Consolidation

The move to Plumtree Court will see Goldman Sachs consolidate its operations, which are currently spread across three buildings in London into the one location.

The new building features an auditorium and client conference centre and a fitness centre, as well as on-site health services and childcare.

NPS’s purchase of the central London office block is part of a new wave of investment from South Korea targeting the UK market this year off the back of a current currency advantage and regulatory changes in the country making overseas investment easier.

Cushman & Wakefield last week predicted that investment from South Korea could hit more than £4bn by the end of 2018.

‘Exceptional tenant’

Scott Kim, the head of global real estate at the National Pension Service, said: “This is one of the finest office buildings in London, which will be let to an exceptional tenant for 25 years.

“We are excited to re-enter the London market with this high-quality asset, which is well-aligned with our defensive strategy and will be an excellent addition to our core portfolio.”

Richard Gnodde, vice-chairman of Goldman Sachs and chief executive of Goldman Sachs International, added: “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.

“NPS is a leading global investor with a long-term horizon and we look forward to a continued strong relationship.”

CBRE and Eastdil advised Goldman Sachs; JLL and LaSalle Investment Management advised NPS.

To send feedback, e-mail Louise.Dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette

Goldman Sachs has agreed the £1.2bn sale and leaseback of its new European headquarters in London with South Korea’s National Pension Service. NPS fought off competition from fellow South Korean pension fund Hanwha; the investment firm of Europe’s richest man retail mogul Amancio Ortega; and CK Asset Holdings, the company backed by the family trust of Hong Kong businessman Li Ka-shing, to acquire the US banking giant’s new headquarters. The deal agreed gives Goldman Sachs, which will move into the 826,000 sq ft Plumtree Court, EC4, office block in the middle of next year, a 25-year lease on the building, with the option to break it after 20 years and the option to extend the lease beyond the initial term. Consolidation The move to Plumtree Court will see Goldman Sachs consolidate its operations, which are currently spread across three buildings in London into the one location. The new building features an auditorium and client conference centre and a fitness centre, as well as on-site health services and childcare. NPS’s purchase of the central London office block is part of a new wave of investment from South Korea targeting the UK market this year off the back of a current currency advantage and regulatory changes in the country making overseas investment easier. Cushman & Wakefield last week predicted that investment from South Korea could hit more than £4bn by the end of 2018. ‘Exceptional tenant’ Scott Kim, the head of global real estate at the National Pension Service, said: “This is one of the finest office buildings in London, which will be let to an exceptional tenant for 25 years. “We are excited to re-enter the London market with this high-quality asset, which is well-aligned with our defensive strategy and will be an excellent addition to our core portfolio.” Richard Gnodde, vice-chairman of Goldman Sachs and chief executive of Goldman Sachs International, added: “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. “NPS is a leading global investor with a long-term horizon and we look forward to a continued strong relationship.” CBRE and Eastdil advised Goldman Sachs; JLL and LaSalle Investment Management advised NPS. To send feedback, e-mail Louise.Dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette