Japanese commercial property giant Kajima begins its latest expansion into the UK with a new London office space purchase on Savile Row.
The 31,691 sq ft office space was bought for £40 million, nearly £10 million less than its cost when purchased by ING Real Estate in 2006.
Michiya Uchida, president of Kajima Europe, told Property Week: “It is a flagship purchase in terms of location and asset quality and we are delighted to be able to secure the property for our portfolio at a price we believe represents excellent long term value.
“Our aim is to create a diversified Central London office portfolio and this is an important step in achieving that strategy.”
The purchase reflects a reversal of fortunes for the firm’s UK commercial property trading company Kajima Europe UK, which recorded a pre-tax loss of £8 million in the year ending December 31st 2007.