Chinese private real estate developer Cheung Kei Group, owned by Hong Kong billionaire Chen Hongtian, has acquired 5 Churchill Place in London's Canary Wharf from landlord Saïd Holdings for £270 mln (€306 mln). The deal was signalled by EuroProperty, the weekly news and analysis publication of PropertyEU Group, on 10 November.
Said said the sale price represents a 'substantial return on the investment made' when it bought the building in January 2010. The deal at the time was reported to amount to £208 mln.
'Said Holdings bought this building at an attractive price when financial markets were in a state of some turmoil,' said Wafic Saïd, founder of Saïd Holdings. 'A well let asset in Canary Wharf seemed to our board to be a sound investment at that difficult time. We are still confident in the strength of the London market, but received a compelling offer from buyer Cheung Kei Group.' The transaction reflects a net initial yield of around 5.2%.
5 Churchill Place provides 319,000 sq ft (29,600 m2) arranged over 12 floors and is mainly let to JP Morgan. Other occupiers include Time Inc, American Express, Cision Gorkana and Balfour Beatty. The scheme previously housed the headquarters of defunct investment bank Bear Stearns.
Saïd Holdings was advised on the sale by Capital Real Estate Partners, Ropes & Gray and Deloitte. JLL, Addleshaw Goddard and Ernst & Young acted for Cheung Kei Group.
The purchase is Cheung Kei’s second acquisition in London since July, when it entered the UK capital with the purchase of 20 Canada Square from Brookfield Properties for £410 mln.
