South Korea’s National Pension Service (NPS) announced that it has acquired 88 Wood Street, London, for KRW 180 and, in a separate transaction, bought a 50% interest in 40 Grosvenor Place, London, for approximately KRW 170 billion.
 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 million per annum, with the Grosvenor London Office Fund continuing to hold the other 50% interest in the asset.
88 Wood Street is a landmark tower building located in the heart of the City of London for £183 million. The office accommodation, totaling 247,000 sq ft across 17 floors, is let to a number of multi-national companies including Mitsubishi, Hewlett Packard Ltd, Collins Stewart Ltd, Bryan Cave and National Australia Bank. The total current income equates to approximately £12.7 million per annum, with an average weighted lease expiry in excess of ten years.
London Real Estate Market’s Return on Investment (ROI) has improved significantly since the real estate market underwent price correction from the first half of 2007. The National Pension Service (NPS) plans to expand its direct investments in prime assets in major cities.