Reed Smith has advised KBC Bank on its sale and lease back of its London office at 111 Old Broad Street to China Construction Bank Group, deal value in excess of £110M. The property comprises approximately 123,000 sq. ft. arranged over eight floors.

The Reed Smith team, led by partner Graham Reid, advised on all aspects of the deal from the sale documents, through to the new leases as well as providing tax advice.

Reed Smith has acted for KBC for nearly 20 years in relation to its lending business and real estate needs, and has been advising the bank on its interests in 111 Old Broad Street since the late 90’s.

Graham Reid, Reed Smith real estate partner, commented:

“Given our relationship of nearly 20 years with KBC, it is gratifying to be able to help them in relation to this exciting sale and leaseback transaction which provides a spring board for its continued success as a business in the UK.

We have seen a significant increase in investment led acquisitions and disposals, both from our UK based clients, as well as our international investor clients. Our team has grown dynamically in the past 18 months, meaning we’re better placed than ever to advise on this type of work. We believe this to be a great deal for our client, unlocking significant capital from one of their assets whilst at the same time securing their continued occupation in the heart of the City.”

KBC Bank London branch general manager Theo Speelmans said:

“This successful transaction will allow KBC to continue its role in the City’s financial community from its well-known and ideally located premises while at the same time providing long-term stability in further developing its business activities.”

The full Reed Smith team included real estate partner Graham Reid, associate Stuart Wright who was lead lawyer from a transactional perspective, tax associate William Reay-Jones and construction associate Chris Parrott.

The buyers were represented by Clifford Chance. Andrew Hughes was lead lawyer for the buyer, assisted by Tina Durani, with the team being led by Mark Payne.

Nick Braybrook of Knight Frank represented the seller with CBRE representing the buyer.