JPMorgan funds bought London headquarters of law firm Allen & Overy, owned by Oman Investment Fund
Two funds run by JP Morgan Asset Management acquired the Oman-owned London headquarters of law firm Allen & Overy, in a deal valued at around £560m ($882m).
The 71,900 sq m building at Bishops Square, adjacent to Spitalfields Market in the City of London financial district, was sold by Oman’s sovereign wealth fund and Hammerson, according to a statement today.
Rents are rising in London because of a scarcity of large new office buildings. The financial crisis made banks unwilling to lend to developers, causing construction in central London to fall to its lowest in more than 20 years, according to real estate broker Drivers Jonas Deloitte.
It predicts that rents in the City rose by 25 percent this year.
“We remain bullish on investing in high-quality, well-tenanted office properties located throughout Europe’s most important cities,” said Peter Reilly, head of JPMorgan’s real estate asset management arm.
Hammerson developed the building in 2005 and sold a 75 percent stake in the property to Oman Investment Fund in June 2009.
It expects to book a profit of £79m for the sale of its remaining 25 percent stake, according to the statement.