US real estate investor Kennedy Wilson has bought Ballymore’s One Embassy Gardens in Nine Elms, SW8, for £177.5m.
The 156,000 sq ft office building sits in the wider Embassy Gardens estate, next door to the US Embassy and close to Apple’s new headquarters at Battersea Power Station. The purchase price represents a yield of 4.5%.
The majority of the building has been taken by publisher Penguin Random House, with 8.3 years of term on the lease and a two-year rental guarantee from the vendor on the vacant space. Other tenants include publisher DK Publishing and recruitment firm Perrett Lave.
The sale of the building comes two years after Ballymore’s sale talks with DWS ended with the potential buyer walking away and the building being withdrawn from the market.
“One Embassy Gardens represents an excellent opportunity to recycle proceeds following the recent opportunistic sale of our central London office asset, Friars Bridge Court,” said Mike Pegler, head of UK for Kennedy Wilson.
John Mulryan, group managing director at Ballymore, said: “The sale of One Embassy Gardens shows that the investment market now sees Nine Elms as one of London’s most compelling commercial locations.
“With the US Embassy, Apple and Penguin Random House and DK already committed we are proud to be part of this area’s ongoing growth story. The future development of our 300,000 sq ft EG:HQ development directly adjacent will add further critical mass to the establishment of Nine Elms as a commercial centre in London.”
Cushman & Wakefield acted for Kennedy Wilson; JLL and Savills acted for Ballymore.
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