Business - - Mar 03,2017
After acquiring Vodafone's Paddington Headquarters Chinese property tycoon Cheung Chung-Kiu buys “Cheesegrater” at a 26 percent higher price.
Hong Kong-based firm CC Land Holdings Ltd has bought the “Cheesegrater”, one of the tallest building in London for $1.43 billion.
British Land and Canada’s Oxford Properties own 50% each of the building, while CC Land Holdings Ltd. is run by the Chinese property tycoon Cheung Chung-Kiu, who holds 50.4% its share. This building deal is still subjected to approval by the CC Land shareholders.
The most recent valuation of the building was of £915m in November 2016. However, the deal values it at a 26 percent higher price.
This deal is the second largest deal for a single building only behind the sale of HSBC towers to Qatar’s sovereign wealth fund for £1.18 billion in 2014. CC Land Holdings Ltd. also bought Vodafone's Paddington Headquarters for £290m in January.
The building is called "Cheesegrater" owing to the unique sloping shape designed to protect views of the iconic St. Paul's Cathedral.
The official name of the Building is the Leadenhall Building, after its location. It has 46 floors and is 225m high. It is the tallest in the City of London business district and was completed in 2014.
The “Cheesegrater” building is costliest building in London with rental prices as high as £100 per square foot. The building provides office spaces mostly to financial services firms. Tenants include names like Aon, Kames Capital and MS Amlin and the building's architects were Rogers Stirk and Harbour & Partners.
This deal is a good sign for commercial property sector in the UK. A weak Pound has become the driving force for investment, regardless of the uncertainty created by the Britain’s referendum to leave the EU.
London would see many more new skyscrapers in near future. Apple is building its new UK headquarter at London’s Battersea power station for $10 billion. Trellis towers, a 310-meter high skyscraper in London will also open soon.