Saudi Arabia-based investor Al Murjan Group has bought London's Kinnaird House office building for 85 million pounds ($121 million) from German fund manager GLL Real Estate, executives involved in the transaction said on Tuesday.
Al Murjan plans to refurbish the 71,500 square foot building, located at 1 Pall Mall East near Trafalgar Square, and exit at a yield of about 4 percent after four to five years, they said.
"This isn't a purely buy and hold kind of asset. There has to be some asset management efforts to the property in order to enhance its sale," said Al Murjan chief executive Hani Baothman.
The deal is the company's largest investment to date in Britain. Sidra Capital, a Saudi Arabian investment bank partially owned by Al Murjan, advised on the transaction.
Kinnaird House is let to consultancy McKinsey & Co in its entirety for another two years, said Currim Oozeer, chief executive of Sidra Capital.For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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