INDUSTRY NEWS

Norges buys London office for £582.5m

Norges Bank Investment Management has bought the London office which is currently let completely by Bank of America Merrill Lynch.

The 585,000 sq ft London office building located at 2 King Edward Street was bought for £582.5m from Singapore GIC.

GIC had originally purchased Merrill Lynch’s flagship City of London office campus in 2007 for £480m.

The Singapore firm manages the foreign-exchange reserves in its country, overseeing around $100bn in assets.

Due to a foreseeable challenging investment environment in the next decade, the Singapore fund has chosen to refocus its portfolio on industries driven by technology and consumers.

This new purchase by Norway’s sovereign wealth fund is expected to be one of many in its UK expansion plans.

In August Norway’s state fund bought a stake in London’s Mayfair district for £343m, which included office and retail space on Saville Row and Cork Street.

2 King Edward Street is one of the remaining former General Post Office Headquarters, Built between 1907-1911, the building’s exterior is decorated by ornamental motifs celebrating King Edward VII, from whom the street takes its name.

Merrill Lynch who currently let the building is one of the world’s largest financial institutions, serving clients in more than 150 countries, providing a range of banking, investing, asset management and other financial services.

By: Kirsty MacGregor

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