China's CC Land pays $1.42 billion for London's 'Cheesegrater' -- Update
01 March 2017 - 11:53PM
Dow Jones News
By Art Patnaude
CC Land Holdings Ltd., backed by a Hong Kong property tycoon,
has paid GBP1.15 billion ($1.42 billion) for a London skyscraper in
one of the city's largest-ever real estate deals.
British Land PLC and Oxford Properties Group, the real estate
arm of Canadian pension fund OMERS, said on Wednesday that they had
sold the Leadenhall Building, known locally as the Cheesegrater for
its triangular shape.
Investment in London property from mainland China and Hong Kong
has surged in recent months. A weak pound compared with the yuan,
as well as economic and political pressures at home, have been
driving the acquisition spree.
CC Land Holdings, backed by Cheung Chung Kiu, bought a different
London office building for GBP292 million earlier this year.
The influx from China and Hong Kong stands out because U.K.
property transaction volumes have fallen sharply in the past year.
Britain's decision to leave the European Union in June, as well as
high prices following a multiyear property boom, have made some
overseas investors wary of current values.
The Cheesegrater, completed in the summer of 2014, is fully let.
Its angled design stems from local planning requirements that
preserve views of the historical landmark St. Paul's Cathedral from
certain vantage points.
The 740-foot-tall building is the tallest tower in the City of
London financial district.
"This sale shows continued investor appetite for best in class,
well located property in London," said Tim Roberts, head of offices
and residential at British Land, in a statement.
The deal is the biggest transaction of a single building in
London since Qatar's sovereign-wealth fund bought the London
headquarters of HSBC Holdings PLC for over GBP1.1 billion in
2014.
Olga Cotaga contributed to this article.
Write to Art Patnaude at art.patnaude@wsj.com
(END) Dow Jones Newswires
March 01, 2017 07:38 ET (12:38 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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