Saudi group buys London building for $121m
RIYADH, March 31, 2016
Saudi Arabia-based investor Al Murjan Group has bought London's Kinnaird House office building for £85 million ($121 million) from German fund manager GLL Real Estate, executives involved in the transaction said.
Al Murjan plans to refurbish the 71,500-sq-ft building, located at 1 Pall Mall East near Trafalgar Square, and exit at a yield of about four per cent 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.-Reuters