Hannover Leasing buys £139m City landmark

FUND manager Hannover Leasing has bought a trophy City office building for £139m.

The German firm has bought 30 Crown Place, a 19-storey building near Liverpool Street station, from the Greycoat Central London Office Fund, in a move that underscores a trend for foreign investors flocking to London as a safe haven market.

The 198,000 sq ft property, completed two years ago, is 85 per cent occupied by law firm Pinsent Masons and 15 per cent by Crown Place Financial.

The law firm, which occupies the space on a 20-year lease ending in 2030, plans to take over the entire building when Crown Financial’s lease expires in five years’ time.

Hannover is one of the leading leasing companies in Germany with €8.9bn (£7.85bn) of capital invested in the group’s closed-end funds. The acquisition value its managed assets amounts to €15.8bn.

The group said Crown Place would be added to one of its a closed-end real estate funds in the third quarter.

London property has continued to attract a surge in overseas capital according to analysts, as foreign investors look for income-producing assets and shelter from volatile markets.

Last week, a Russian investor acquired the Rolex flagship store underneath One Hyde Park, the luxury apartments managed by the Candy brothers, at a benchmark price of £12.5m.

Hannover Leasing was advised by Franc Warwick, while Greycoat was advised by CB Richard Ellis.