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Goldman considering re-allocating $1.8 billion away from its London-based headquarters

Property Markets / Transactions

United Kingdom / London

Feb 27 2018

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According to The Australian Financial Review, unnamed sources say no final decision has been made on the sale of the property, located near existing Fleet Street office in London, but spokesmen for both Goldman Sachs and broker CBRE Group declined to comment.

Over the past year, demand from overseas investors has prompted a number of companies to sell and leaseback their London headquarters, with rising prices pushing yields for buildings in the City of London’s financial district to a record low of four percent.

Bloomberg Intelligence analyst Sue Munden said a sale and leaseback would mean Goldman Sachs could extract the capital now in case there was a Brexit wobble or interest rate rise, which would expand yields.

"They can also put the capital to work on core operations while still ensuring they have a prestigious London headquarters."

While 2016’s Brexit vote triggered a fall in prices for City of London offices, they returned to record highs early last year.  Rents have remained high, despite political uncertainty, due to a lack of new development in the aftermath of the global financial crisis, along with strong demand from flexible office space companies.



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