Hong Kong’s Cheung Kei Group has made its second real estate purchase in London’s Canary Wharf by acquiring an office building for £270m (€306m).
Cheung Kei, which is owned by property tycoon Chen Hongtian, is buying 5 Churchill Place in Canary Wharf, a major business district in London, from Saïd Holdings.
The acquisition follows an earlier deal in July this year, when the investor acquired a 53,900sqm prime office building at 20 Canada Square in Canary Wharf for £410m.
Wafic Saïd, founder of Saïd Holdings, said the building was acquired “at an attractive price when financial markets were in a state of some turmoil”.
“A well-let asset in Canary Wharf seemed to our board to be a sound investment at that difficult ime. We are still confident in the strength of the London market, but received a compelling offer from buyer Cheung Kei Group.”
David Seymour, partner at Ropes & Gray, the law firm that advised Saïd Holdings, said: “The real estate market remains cautious as a result of political instability and uncertainty and some investors have their foot on the ball.
“However, the core London market remains attractive to Asian and Middle Eastern investors in a flight to security.
“We will continue to see Middle Eastern and Asian high-net worth investors investing in London, placing capital in an international safe haven with a recognised rule of law.”
“Those high-net-worth buyers see the currency arbitrage and also view Brexit as a political, rather than an economic, event.”
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