Samsung to sell Commerzbank’s 400,000 sq ft City HQ
Samsung Life Insurance, advised by Deutsche Asset Management, is considering a sale of its prime City of London asset, 30 Gresham Street, the c.400,000 sq ft headquarters of Commerzbank and Investec, close to the Bank of England and overlooking The Guildhall.
Originally constructed by Land Securities, the development occupies an island site of almost 1.5 acres in the heart of the City of London, and is let for a further 10 years.
Whilst the current owner has carried out some asset management initiatives within the building, the overall passing rent is still believed to be only £45 per sq ft, comparing very favourably to prime rents, which now exceed £70 per sq ft. Investec continue to expand within the building, having taken a further 150,000 sq ft from Commerzbank last year.
The South Korean investment fund have retained Knight Frank and CBRE to advise on the options to capitalise on the current strength of the market in London, as recently demonstrated by the sale of The Leadenhall Building for a yield below 3.5%.
A guide price for the building is yet to be agreed but the asset is larger than the 240,000 sq ft neighbouring 20 Gresham Street, which AXA is currently selling for £315m, reflecting a yield of 4%.
All parties declined to comment.