Korea's NPS makes first London office buys

LONDON (Reuters) - South Korea's National Pension Service (NPS) has spent 268 million pounds on a brace of London office deals, as part of a $3 billion (1.8 billion pound) overseas property investment plan, its advisor said on Monday.

In the larger of the two buys, the world's fifth-biggest pension fund bought 88 Wood Street in London's City financial district for 183 million pounds from ING property unit (ING.AS), advisor Rockspring Property Investment Managers LLP said.

The price reflects an indicative yield of about 6.9 percent.

It has also bought a 50 percent interest in 40 Grosvenor Place, near Buckingham Palace, for about 85 million pounds from clients of Invista Real Estate Investment Management INRE.L.

The acquisitions were secured by Rockspring on behalf of the NPS Central London Property Limited Partnership.

The 247,000 square foot Wood Street property generates about 12.7 million pounds in rents a year, with an average weighted lease expiry in excess of 10 years. Rockspring has secured a new debt facility with Bayern LB for 91.5 million pounds as part of the acquisition.

The Grosvenor Place property produces about 11.7 million pounds of net rental income a year. The Grosvenor London Office Fund will continue to hold the remaining 50 percent interest.

"These two iconic properties clearly demonstrate the type of assets which we will continue to source on behalf of NPS, as they benefit from a prime location and are well let to major tenants," Robert Gilchrist, chief executive of Rockspring said.

Broker Knight Frank advised Rockspring on both acquisitions.

(Reporting by Sinead Cruise; Editing by Andrew Macdonald)

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