King Sturge advises St Martins on £400 million acquisition of Willis Building
22 May 2008
Property moguls use credit crunch to their advantage
International property consultants King Sturge has advised St Martins, the UK based property vehicle for the Kuwaiti Sovereign Wealth Fund, on a £400 million acquisition of the Willis Building - the City’s fourth tallest landmark tower building.
St Martins acquired the building on an off-market basis, avoiding competition for the asset. The purchase takes advantage of the effects of the credit crunch, as prices have fallen dramatically over the last year by up to 20%.
Commenting on the transaction, James Beckham, Head of City Investment, King Sturge said: “St Martins has struck at the right time - taking advantage of the quieter market conditions to acquire the Willis Building, which is a trophy asset on the London skyline. Undoubtedly, foreign investment in the UK, much of it through sovereign wealth funds, will be one of the main lifesavers to see London through the market downturn.”
Designed by Sir Norman Foster, the new worldwide headquarters of Willis, the insurance giant, comprises an office tower of 28 storeys together with a low-rise building, comprising approximately 496,000 ft² and is let to The Willis Group for 25 years.
The Kuwait Investment Authority, a commodity Sovereign Wealth Fund created in 1953 from oil revenues, was the world's first Sovereign Wealth Fund to be launched. Its fund is estimated to be worth around $250 billion.
The vendor, British Land, is seeking to recycle capital within its City portfolio and welcomed the opportunity to transact with the long established St Martins. British Land represented themselves in negotiations.
