Hong Kong-based developer Chinese Estates Holdings is selling a Grade A office building in London's prestigious Mayfair district.
The move is seen as an attempt by the company to improve its financial situation, after suffering a 93% drop in net profit last year.
The property, located at 14 St George Street, is being marketed by Colliers for a guide price of £135 mln (€160 mln), according to market reports.
Chinese Estate Holdings originally acquired Josie Palace in 2016 from UK investment firm Aberdeen Asset Management for £121.7 mln (€144 mln).
Falling rental income from its UK office properties is another factor driving the sale. In its annual report, the developer attributes this decline to ongoing renovation projects within its London portfolio. Despite ‘volatility and uncertainties’ in 2024, the company will ‘seek opportunities for future growth.’
Despite the asking price being slightly higher than the original purchase price in 2016, the office block has seen a decrease in rental income. Currently leased to two tenants, the average rent sits at £83.50 (€98.78) per square foot.
Designed by Eric Parry, the property is conveniently located in London's West End, a 5-minute walk from both Bond Street and Oxford Circus stations. It boasts 4,818 m2 of usable space spread across five floors and a lower ground level.
Chinese Estates Holdings also holds a diverse portfolio across London, including a 7,653 m2 office block at 11-12 St James’s Square, a mixed-use property on Oxford Street, and office buildings at 120 Fleet Street, one undergoing redevelopment into a major office and retail tower.
