Goldman Sachs is one of the best known names in the investment world. The banking giant has officially put its London office headquarters in Peterborough Court up for sale, with a record price tag of £300 million.
The building formerly housed the Daily Telegraph, and has been put under the care of Jones LangSalle after the owner defaulted on loans at the end of 2010. Half of these London offices, the adjacent River Court base serviced offices Bank, were sold earlier this month by the Asian property managers, Chinese Estates, for £280 million. The building was designed in the classic art-deco style and was once the London office space of the Daily Express.
This week, Jones LangSalle officially began marketing this postmodern high rise building, as well as the self-contained Daniel House office on the same London address. The building comprises 370,000 square feet of prime central London office space and has been leased to Goldman Sachs until the year 2026.
The expansive central London offices are expected to draw an incredible amount of foreign interest from buyers such as Malaysia’s Employees Provident Fund. This company recently purchased the Whitefriars building which is occupied by the law firm Freshfields Bruckhaus Deringer, and have an additional £1billion set aside to acquire more London commercial property, including serviced offices.
These London offices to rent acquire nearly £18 million per annum from its occupiers. Foreign investors believe that it is safe to invest in London properties and that they can expect a steady return. Henderson Global Investors is one such company, which spent £20 million on London serviced offices 7 Bishopsgate near Liverpool Street Station. The sale of this building was also forced when the owners defaulted on payments.
As more companies find themselves struggling to repay loans, we can expect to see more forced sales and these London office buildings be acquired by foreign investors. In the meantime the property market waits to see who will be the new owners of the Fleet Street London office building.