INDUSTRY NEWS

Commerz Real agrees to sell One Lime Street London office for £260m

Commerz Real has sold the Lloyd’s London office building on One Lime Street for a reported £260m.

The Ping An Insurance group has agreed to purchase the property after months of speculation.

Commerz Real bought the London office block, nicknamed the ‘Inside Out’ building in 2005 for a reported figure of £231m, but prior to confirmation of this deal, had been looking to sell the property for a significant period of time.

It was designed by Richard Rogers and opened in 1986, earning its nickname due to many elements of the building, such as lifts and pipes, being located on the outside of the London office block.

Roland Holschuh, the member of the Board of Managing Directors of Commerz Real AG responsible for the real estate business, said: “The development of London’s real estate market and the high level of demand for high quality office space in top locations offered the ideal prerequisites for a sale of the building at the current point in time.”

Commerz Real Fonds Beteiligungsgesellschaft mbH managing director, Michael Kohl, added: “For the investors in the fund this transaction means that eight years after their investment they can book a liquidation result of some 114%.

“Together with the annual distributions it has thus been possible to attain an average annual return before taxes of some 7.8%.”

Ping An is China’s second-largest insurer, its purchase of One Light Street marks the latest in a significant influx of Chinese firms snapping up London office or residential properties.

Dalian Wanda Group, recently confirmed it would invest into a London residential tower, with the view to building a hotel and ABP Holdings Group purchased a site at Royal Albert Dock to develop into an Asian business hub.

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