Rothesay Life has agreed to provide a £180m senior loan to the Korean buyers of the £285m Sanctuary Buildings in Victoria, SW1.
JLL, which advised joint venture partners Hana Financial Group and Kiwoom Securities, confirmed the acquisition from Blackstone – which reflects a 4.2% net initial yield – and the loan it secured for the Korean investors.
The 225,000 sq ft building is fully occupied by the Department for Education for another 15 years, after the government extended its lease in 2018.
Blackstone first acquired the property from Tishman Speyer in 2014 for £175m – representing a circa 5.6% yield – when the DfE had only around three years left on its lease.
David Barry, senior director in JLL’s debt advisory team, said: “Securing a debt package on Sanctuary Buildings from Rothesay Life resulted in the Korean consortium generating a strong cash-on-cash return in excess of 7%.
“The transaction represents the international demand from overseas investors for long-dated income supported by good covenants, which can provide strong financial returns.”
JLL acted on behalf of Hana Alternative; CBRE and Savills acted for Blackstone.
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