UK REIT British Land and Oxford Properties, the global real estate arm of Canada's OMERS pension fund, have inked a deal to sell The Leadenhall Building for £1.1 bn (€1.35 bn) to Hong Kong investor C C Land.
'British Land and Oxford Properties took a bold step at the early stages of the UK’s economic recovery to develop The Leadenhall Building to generate a high-quality, long-term income stream. It’s a decision which has really paid off,' commented Tim Roberts, head of offices and residential at British Land.
'Through a strong, collaborative partnership, we have delivered an iconic, award-winning building let to high- calibre occupiers at record City rents. This sale shows continued investor appetite for best-in-class, well- located property in London,' Roberts said.
British Land and Oxford Properties developed The Leadenhall Building, dubbed 'The Cheesegrater', as an investment in a 50/50 joint venture formed in 2010.
Construction of The Leadenhall Building started in early 2011 and was completed in summer 2014. The building is fully let with an average remaining lease term of over 10 years to break, with tenants including insurers Aon and MS Amlin, and the building’s architects Rogers Stirk Harbour + Partners.
Tallest building in London
At 736 feet (224 metres), The Leadenhall Building is the tallest building in the City of London comprising 610,000 ft 2 (60,000 m2) of office accommodation over 46 floors.
British Land and Oxford Properties will sell their entire shareholdings in the company which holds the investment in The Leadenhall Building to C C Land, subject to approval by the shareholders of C C Land (by simple majority) in a special general meeting in accordance with the Hong Kong Listing Rules.
'Oxford Properties has enjoyed a highly successful partnership with British Land through our joint investment in the development, delivery and management of this iconic building. We have delivered on our strategy of ensuring that The Leadenhall Building meets its potential to become one of the most commercially successful investments in London,' commented Paul Brundage, executive vice president and senior managing director – Europe, Oxford Properties.
'The Leadenhall Building has been a cornerstone of our London business and has propelled Oxford Properties to a leading position in European real estate development and investment. We are fully committed to the UK and Europe for the long term and are looking forward to pursuing further investment opportunities going forward either on our own or with like-minded partners such as British Land,' concluded Brundage.
British Land and Oxford Properties were advised by Cushman & Wakefield, Eastdil Secured, Mayer Brown and Herbert Smith Freehills.
