has bought a London office asset from GIC, the sovereign wealth fund.
The Bank of America Merrill Lynch complex in the City district of the London capital was sold for around 拢582.5m (鈧�738m), according to media reports.
The sale of the 585,000sqft London asset is another example of the appreciation in value of London commercial real estate.
GIC paid 拢480m for the property in 2007.
Last month, it emerged that South Korea鈥檚 NPS was selling the HSBC tower at Canary Wharf for around 拢1.1bn 鈥� having paid 拢772m in late 2009.
The London office market is close to its peak, delegates at this week鈥檚 Expo Real conference .
Mike Sales, managing director for Europe at Real Estate, said investors should have 鈥渁 big eye on the exit鈥� as the weight of capital pushes yields to unnatural levels.
Sales said there was a 鈥渃autionary sign in the market鈥�, with the influx of foreign capital driving yields down to 鈥渨hat might be abnormal levels in six months鈥� time鈥�.
Restricted supply of new office stock 鈥� along with heightened demand for commercial space 鈥� will see vacancy rates fall in key cities by 2019 and average 6.3% in the top 10 global cities, according to Knight Frank.
In Tokyo and London, vacancy is tipped by the advisory firm to drop to just 3.9% and 4.4%, respectively.
In the US, Norges recently agreed to buy 45% stakes in three US office properties from US REIT Boston Properties.
Interests in 601 Lexington Avenue and Atlantic Wharf, in New York City, and 100 Federal Street in Boston are being sold to Norges for $1.5bn (鈧�1.2bn).
The sovereign wealth fund is forming a joint venture with Boston Properties to manage the assets.
