Hong Kong investor-developer Chinese Estates has acquired an office building on St James's Square in London for £175 mln (€209 mln). The sale of the property is the third on the square to a company from Hong Kong so far this year.
Chinese Estates purchased 11/12 St James's Square, Westminister at a net initial yield of 4.45%. The vendor was Savills Investment Management, acting on behalf of Malaysia's Employees Provident Fund (EPF).
The 7,430 m2 office building is multi-let to several tenants, including Blackstone and Marble Bar Asset Management. This is the fourth significant acquisition Chinese Estates has made in Central London in the past two years.
CBRE advised Chinese Estates, whilst Savills acted for Savills IM.
James Rood, senior director in the Central London investment team at CBRE, described the acquisition as another example of the strength of appetite and commitment from overseas capital, particularly from Asia, for prime London real estate.
In January Sun Tak, a Hong Kong-based conglomerate, acquired 7-8 St James's Square from Green Property for £213 mln, reflecting a yield 3.69%.
Last month Welput, the Central London real estate fund managed by Schroder Real Estate, and advised by Grafton Advisors, exchanged contracts to sell 3 St James's Square to a consortium of investors in Hong Kong's Joint Treasure International Limited. The investment volume of £135 mln reflected a net initial yield of 3.96%.
