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Rockspring Property Investment Managers announced on Monday that it has completed its first acquisitions in London on behalf of the South Korean National Pension Service's London Property Limited Partnership for a total of EUR 296 mln. The acquisitions comprise 88 Wood Street, which it bought for £183 mln (EUR 202 mln) from ING Real Estate Investment Management. In a separate transaction Rockspring acquired a 50% interest in 40 Grosvenor Place for approximately £85 mln (EUR 94 mln) from clients of Invista Real Estate Investment Management.

The iconic, landmark tower building at 88 Wood Street in the heart of the City of London comprises 23,000 m² across 17 floors, and is let to a number of multinational companies including Mitsubishi, Hewlett Packard, Collins Stewart, Bryan Cave and National Australia Bank. The total current income amounts to approximately £12.7 mln per annum, with an average weighted lease expiry in excess of 10 years. As part of the acquisition, Rockspring secured a new debt facility with Bayern LB for £91.5 mln.

The asset at 40 Grosvenor Place is located in the heart of Victoria and comprises six floors of office space, let to major tenants such as Capital International, Bluecrest, LEK Consulting and EDF Energy, as well as two restaurants on the ground floor. Total net rental income on the property is approximately £11.7 mln annum, with the Grosvenor London Office Fund continuing to hold the other 50% interest in the asset.

These acquisitions are part of an investment mandate which is being undertaken by Rockspring on behalf of The National Pension Service of Korea (NPS), the world's fifth largest pension fund, to invest in Central London trophy assets. It is targeting major landmark assets, typically valued in excess of £150 mln, located from the West End through to the City in both the office and retail sector.

Knight Frank advised Rockspring on both acquisitions and Berwin Leighton Paisner acted as legal advisors.

Robert Gilchrist, Chief Executive of Rockspring and Fund Director for NPS Central London Property Limited Partnership, said: 'These two iconic properties clearly demonstrate the type of assets which we will continue to source on behalf of NPS, as they benefit from a prime location and are well let to major tenants. The quality of the assets is reflected in the fact that we were able secure major new financing for the Wood Street acquisition. We are delighted to have completed these first transactions on behalf of our client as we continue to make strong progress on other possible acquisitions. We hope to be able to announce further transactions shortly.'