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SCMP Reporter

THE Lloyd's Building, home to Lloyd's of London, has been sold to a German investor for GBP180 million (about HK$2.12 billion) in one of the decade's largest investment deals in the city.

  The historic building was purchased by DESPA, a German open-ended fund operator, according to estate agent Richard Ellis of London, which brokered the deal.

  In an announcement yesterday, Richard Ellis said DESPA had acquired the freehold for the Lloyd's Building, which is located at 1 Lime Street, London.

  Under the terms of the deal, the Society of Lloyd's will lease back the entire building at market rents for a period of 35 years with break clauses in the 25th and 30th years.

  According to Richard Ellis officials, the building will fetch DESPA GBP11.6 million in annual rent revenue for a 6.27 per cent yield, with rent reviews conducted every five years.

  Willi Alda, managing director of DESPA said both parties 'were delighted to have agreed to the transaction which has fitted into our London and European portfolio excellently'.

  The building, home to international underwriters, was designed by Sir Richard Rogers 10 years ago and comprises about 360,000 square feet of top quality flexible office accommodation.

  Floor plates range from about 30,000 sq ft to about 11,000 sq ft on the upper floor.

  The upper concourse and Gallery levels one to four are being occupied by the underwriters.

  Galleries six to 10 have been sub-let by Lloyd's to the insurers operating within the building, while the remaining floors are occupied by Lloyd's itself.

  The property is unique in design with sewage, water and air ducting on the outside of the building.

  The floor plates are arranged in a rectangle around a central atrium and provide flexible column-free space.

  Dominic Leung, executive director with Richard Ellis Hong Kong, said the sale was 'one of the largest property deals of the 1990s and is certainly the largest investment purchase in the City since 1992'.

  'It also represents the largest such investment transaction that a German investor has ever made in central London,' he said.

  According to Richard Ellis officials in London, the fact that the transaction was done in only a month was one of the more remarkable features of the deal.

  John Slade, a partner with Richard Ellis London, said: 'Our clients, with their ability to move quickly, were able to capture a landmark property.

  'It was particularly satisfying to work on such a large transaction that was completed so swiftly,' he said.



Lloyd's Building sold for $2b