Malaysian haji pilgrims fund Lembaga Tabung Haji has completed the acquisition of its second major asset in central London, with the circa £205m purchase of 151 Buckingham Palace Road, SW1, CoStar News reports.
Market sources said Lembaga has now completed on the acquisition of the Victoria asset from Ivanhoé Cambridge. A price of £205m is understood to have been agreed which would equate to a yield of just under 7%.
Lembaga is understood to have fended off stiff competition from underbidder Hines, as well as Malaysian government funds EPF and KWAP.
The purchase of 151 Buckingham Palace Road follows the completion of Tabung Haji’s deal last September to buy SJ Berwin’s distinctive City offices at 10 Queen Street Place, EC4, for £165m, reflecting an initial yield of 5%.
The deal was first revealed by CoStar News in July, when Tabung Haji entered into talks to buy the 221,198 sq ft block from Irish investor Jaguar Capital.
Lembaga Tabung Haji is the Malaysian hajj pilgrims fund board, formerly known as Lembaga Urusan dan Tabung Haji. The fund facilitates savings for the pilgrimage to Mecca through investment in Shariah-compliant vehicles.
Ivanhoé Cambridge instructed CBRE to sell 151 Buckingham Palace Road last October for £220m, reflecting an initial yield of 6.4%.