China's CC Land pays $1.42 billion for London's 'Cheesegrater' -- Update

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 [e-mail]

(END) Dow Jones Newswires

March 01, 2017 07:38 ET (12:38 GMT)

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