PING An Insurance Group agreed to purchase the Lloyds Building in London from Commerz Real, a German closed-end fund, for 260 million pounds (US$388 million), property broker Savills said yesterday.

The transaction represents the first purchase by a Chinese insurance company in Britain.

"This is a potentially landmark transaction, given it is the first by a Chinese Insurance company overseas,'' said Jon Crossfield, director at Savills' Central London team.

"It is a high profile and confident entry to the market for them and further illustrates the dominance of overseas investors in London at present. We are delighted with the transaction and it has been a major success for our investors."

The Lloyds Building, a landmark property, is home to the world's leading insurance market and leased entirely to the Society of Lloyds on a lease expiring in 2031. The building is located in the City of London and was bought by Commerz Real in 2005 for 231 million pounds.

"The current liquidity and investor demand in the London market presented an ideal time for us to seek an exit in line with our original business plan," said Roland Holschuh, a member of the Management Board of Commerz Real.