The FINANCIAL -- The Goldman Sachs Group Inc. announced it has entered into a binding agreement for the sale and leaseback of Plumtree Court with Korea’s National Pension Service (“NPS”). Plumtree Court will be the new European headquarters of Goldman Sachs in London from mid-2019 when it is expected to take occupancy of the premises.
As part of the agreement, Goldman Sachs will enter into a 25 year lease on the building with a break option after 20 years, and the ability for Goldman Sachs to extend the lease beyond the initial term. This transaction, which values Plumtree Court at £1,165 million, allows for the consolidation of the firm’s activities, currently located across three buildings, into one fully-serviced and sustainable location.
Richard Gnodde, Vice-Chairman of Goldman Sachs and CEO of Goldman Sachs International, said: “The development of Plumtree Court and our signing of a long-term lease demonstrates our continued commitment to London and our European operations more broadly.
Scott Kim, the Head of Global Real Estate at National Pension Service said: “This is one of the finest office buildings in London, which will be let to an exceptional tenant for 25 years. We are excited to re-enter into the London market with this high quality asset which is well-aligned with our defensive strategy and will be an excellent addition to our already strong core portfolio.”
The sale and leaseback of Plumtree Court is part of Goldman Sachs’ long-term global real estate strategy, enabling the firm to capitalise on the significant value it has created in developing a world-class building while securing a long-term occupation in a prime location. It follows the sale and leaseback of Goldman Sachs’ current headquarters on Fleet Street, Peterborough Court, in 2005.