Hong Kong's Lifestyle International has agreed to buy 1 St James Square from British energy company BP, in a £250 mln (€281 mln) sale-and-leaseback deal.
Department store operator Lifestyle International is controlled by Thomas Lau, brother of Hong Kong property billionaire Joseph Lau.
The BP tenancy agreement is for just two years, after which the former-oil giant is set to move to Canary Wharf, in east London’s financial district. The Times newspaper reported that the leasing agreement also gives BP time to make alternative plans for staff, many of which may move to a hybrid home-and-office working regime.
BP, which is currently repositioning to low-carbon energy, is seeking to offload some $25 bn (€21 bn) of assets by 2025. The strategy is part of new CEO Bernard Looney's push to reduce the firm's carbon footprint, as well as reduce debt, in the face of falling oil and gas prices. The transition will also see the firm lay off 10,000 workers globally.
According to BP, nearly half of the portfolio earmarked for disposal has already been sold or is under offer.
JLL advised BP on the sale.
