- Cushman & Wakefield advises on landmark acquisition which sets a new UK record for a single office transaction
Infinitus Property Investment (Hong Kong) Limited, a wholly-owned subsidiary of LKK Health Products Group, advised by Cushman & Wakefield, has acquired the 100% interest in 20 Fenchurch Street – also known as the Walkie Talkie – for £1.2825 billion (approximately HKD $12.8 billion). This is the UK’s largest ever office deal.
Landsec and Canary Wharf Group completed the property in 2014. The iconic 37-storey office tower provides 713,000 sq ft of accommodation and is 100% leased to investment grade tenants with an average of 13 years of income across the building. Designed by Raphael Vinoly the property also features the famous Sky Garden which has quickly become one of the most popular visitor attractions in London.
Cushman & Wakefield introduced the deal and advised on the acquisition of the property by pre-empting the marketing campaign and placing the building under offer on a proactive basis. The transaction represents a record for a single UK asset, surpassing the £1.175bn paid by the Qatar Investment Authority to acquire the HSBC Tower in Canary Wharf in December 2014.
James Beckham, Head of London Capital Markets, Cushman & Wakefield, said: “This record-breaking deal demonstrates the enormous investor appetite in London, and in the City’s reputation as the global place to do business. Since the vote to leave the EU, capital targeting London from the Asia-Pacific region has increased to record levels. This is partly due to currency fluctuations but is more indicative of longer-term confidence in London and investment strategies which are not derailed by short-term political uncertainty.
“As Asian economies mature, investors there are deploying capital more broadly and London’s real estate continues to be seen as the number one destination.”
While the two largest deals of the year have both seen deals in excess of £1.1bn from Hong Kong-based investors, capital from across the region is investing in London with buyers from Singapore to South Korea making acquisitions in recent weeks.
James Beckham added: “It has been a pleasure to work with LKKHPG on this historic transaction which is the largest ever office deal in the UK. The quality of the building and the income are testament to the best-in-class developers Landsec and Canary Wharf Group who have delivered an iconic tower to the London landscape. It was a great team effort working with Mayer Brown and PwC in order to close the transaction in a timely manner.”
Infinitus Property Investment
Infinitus Property Investment (Hong Kong) Limited, a wholly owned subsidiary of LKK Health Products Group, owns and manages premium office and retail space in the CBD of Guangzhou and Shanghai, China; and Central District, Hong Kong Special Administration Region of China. The total office and retail space to be managed will be over 3.2 million sq ft including new Guangzhou Infinitus Plaza (under construction) to be completed in 2020.
LKK Health Products Group Limited
LKK Health Products Group, a Hong Kong based corporation, was established by the Lee Kum Kee family in 1992. The Group operates diversified business in TCM health products, property investment, Chinese herbs planatation and trading and venture capital for start ups. The trade mark for the Group include ‘Infinitus’, ‘Tianfangjian’ and ‘Happiness Capital’.
About Cushman & Wakefield
Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. Our 45,000 employees in more than 70 countries help occupiers and investors optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $6 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. 2017 marks the 100-year anniversary of the Cushman & Wakefield brand. 100 years of taking our clients’ ideas and putting them into action. To learn more, visit www.cushwakecentennial.com, www.cushmanwakefield.com or follow @CushWake on Twitter.