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Commerz Real sells Lloyd’s Building in London
Commerz Real has successfully sold the property in its CFB Fund 154, the Lloyd’s Building in London, for 260 million pounds sterling. The buyer of the property is an Asian asset management company of the biggest insurance company from China.
The office building was purchased in 2005 for 231 million pounds sterling and contributed to the CFB Fund 154. The fund was originally planned to have a term of 11.5 years. In September 2012 the investors granted the management of the fund authority to sell the real estate if there was a concrete opportunity for a sale. The proceeds now realised from the liquidation reflect virtually exactly the then prognosis from the investment prospectus. «The development of London’s real estate market and the high level of demand for high quality office space in top locations offered the ideal prerequisites for a sale of the building at the current point in time» says Roland Holschuh, the member of the Board of Managing Directors of Commerz Real AG responsible for the real estate business. «For the investors in the fund this transaction means that eight years after their investment they can book a liquidation result of some 114 per cent. Together with the annual distributions it has thus been possible to attain an average annual return before taxes of some 7.8 per cent » adds Michael Kohl, managing director of Commerz Real Fonds Beteiligungsgesellschaft mbH (CFB).
The landmark property was completed in 1986 and is located in the City of London office market. The tenant since its completion has been Lloyd’s, one of the oldest insurance markets worldwide. The Lloyd’s Building has won several awards for its unusual, modern architecture and is a listed building.
Source: Company