Malaysian sovereign wealth fund Permodalan Nasional Berhad is preparing to sell two City offices, including Linklaters’ headquarters at One Silk Street, EC2.
PNB is in the process of instructing advisers to oversee the separate sales of One Silk Street (also known as Milton & Shire House) and 90 High Holborn, WC1. The Malaysian investment fund is expected to make between £550m and £600m from the two assets, according to advisers familiar with the buildings.
The sales would be the first by PNB since it invested heavily in central London in 2012-15, deploying more than £1bn in office assets that also included One Exchange Square, EC2, home to the European Bank for Reconstruction and Development.
Milton & Shire House comprises 465,745 sq ft across two separate but interconnecting buildings originally constructed for BP in the 1980s. It is let to Linklaters on a lease expiring in 2027. PNB acquired the building in 2011 for £350m – a yield of 5.4%.
PNB acquired 90 High Holborn from KanAm in 2012 for £155m – a net initial yield of circa 5.25%. The former Olswang HQ comprises 186,000 sq ft of offices. Olswang vacated its 91,000 sq ft of offices at the building this summer following its merger with CMS and Nabarro.
Savills, CBRE and Cushman & Wakefield have been instructed to sublease the space, which Olswang holds on a lease expiring in March 2022. Other occupiers at the building include the Independent Police Complaints Commission and law firm Quinn Emanuel Urquhart & Sullivan.
Its most recent London acquisition was Aviation House at 126 Kingsway, WC2, which it acquired in January 2015 for around £150m – a net initial yield of 4.85%.
PNB’s London Portfolio
One Silk Street, EC2: Milton & Shire House comprises 465,745 sq ft across two separate but interconnected buildings. The property is bounded by Silk Street and Milton Street and is entirely leased to Linklaters on a lease expiring in 2027. PNB acquired the asset in 2011 from Beacon Capital Holdings for £350m – a yield of 5.4%
One Exchange Square, EC2: The European Bank of Reconstruction and Development’s headquarters is located within the Broadgate office complex, adjacent to Liverpool Street Station. EBRD occupies the majority of the 490,000 sq ft building on a lease expiring in 2022. PNB acquired the building from KanAm in 2012 from KanAm for £395m.
90 High Holborn, WC1: The former Olswang HQ comprises 186,000 sq ft of offices. Olswang vacated its 91,000 sq ft of offices at the building this summer following its merger with CMS and Nabarro. Other occupiers at the building include the Independent Police Complaints Commission and law firm Quinn Emanuel Urquhart & Sullivan. PNB acquired the building from KanAm in 2012 for £155m.
Aviation House, Kingsway, WC2: The 164,200 sq ft property in Holborn is currently leased various government departments including Food Standards Agency, Ofsted, and 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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