Development company Chinachem Group has acquired an office let entirely to Chinese video hosting service,TikTok, in the office district of London – its entry into the European city.
Hong Kong-based Chinachem has agreed to buy the 88,580 ft2 Kaleidoscope building for £158.5 mln (€183 mln) from UK company, Helical Bar.
Donald Choi, executive director and CEO of Chinachem Group, said in a statement: ‘Having now made our London entrance, we will incrementally increase our exposure in gateway cities of other major developed markets in order to move further forward our diversification objectives and build a long-term resilient income stream. However, Hong Kong still remains our home and the core market of our business operations.’
Helical was advised by JLL and Chinachem was advised by Deloitte and Ingleby Trice.
The Kaleidoscope is a six-story property in Lindsey Street, EC1. TikTok has a 15 year lease signed in March 2021 at £7,633 per annum, an average rent in excess of £86 ft2.
The purchase price represents a capital value of £1,789 ft2 at a marginal premium to Helical’s book value.
It is accredited BREEAM Excellent.