Yahoo Finance Property investor snaps up One Embassy Gardens office building in London
A US property investor on Tuesday showed a vote of a confidence in London’s office market, with a $252 million deal for a building in the Nine Elms area.
Kennedy Wilson has bought 156,000 square feet office building One Embassy Gardens from property developer Ballymore which said the disposal was at a price of £177.5 million. It is home to publisher Penguin Random House, DK Publishing and recruitment firm Perrett Laver, and overlooks the US Embassy.
The deal comes despite plenty of commentary around whether London’s office market will remain attractive long term as more employers embrace flexible working, with some firms looking to reduce space.
However, a number of investors are betting that occupier demand will remain strong for modern and environmentally-friendly workspaces.
Mike Pegler, head of UK for Kennedy Wilson said the site “is a high-quality, green-certified asset of scale with a secure income stream”.
He added that it is located “within one of the fastest-expanding submarkets of central London and it is set to further benefit from the ‘tech-clustering’ effect when Apple opens its HQ in 2022”.
Property agents JLL and Savills advised the vendor and Cushman & Wakefield acted for the buyer.
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