HK food gi­ant buys Lon­don land­mark in record deal

China Daily (Hong Kong) - - WORLD - By CECILY LIU in Lon­don cecily.liu@mail.chi­nadai­lyuk.com

The land­mark Lon­don of­fice block known as the Walkie Talkie has been sold to a unit of Hong Kong-based food gi­ant Lee Kum Kee Group in the United King­dom’s big­gest deal for a sin­gle of­fice build­ing.

LKK Health Prod­ucts Group an­nounced the pur­chase of the iconic 37-story build­ing at 20 Fenchurch Street, in the cap­i­tal’s in­sur­ance dis­trict, for 1.28 bil­lion pounds ($1.68 bil­lion) from de­vel­op­ers Ca­nary Wharf Group and Land Se­cu­ri­ties, on Thurs­day.

The pur­chase is the lat­est Chi­nese in­vest­ment into Lon­don’s com­mer­cial prop­erty sec­tor fu­eled by the pound’s de­pre­ci­a­tion amid Brexit un­cer­tain­ties.

The deal fol­lows CC Land’s pur­chase of Lon­don’s Lead­en­hall Build­ing for 1.15 bil­lion pounds in March this year.

The ac­qui­si­tion was made through LKK’s wholly owned sub­sidiary In­fini­tus Prop­erty In­vest­ment.

The com­pany said the deal ben­e­fits from both rea­son­able rental in­come and sta­ble cap­i­tal ap­pre­ci­a­tion, and will be a long-term in­vest­ment.

The Walkie Talkie is a land­mark build­ing unique for hav­ing larger ar­eas on its up­per floors. It has 66,240 square me­ters of of­fice space, cur­rently fully leased to in­vest­ment- grade-rated com­mer­cial ten­ants, and houses the pop­u­lar, three-story Sky Gar­den.

The trans­ac­tion broke the record for a sin­gle UK as­set, sur­pass­ing the 1.2 bil­lion pounds paid by the Qatar In­vest­ment Au­thor­ity to ac­quire the HSBC Tower in Lon­don’s Ca­nary Wharf in De­cem­ber 2014.

MORRY GASH / AS­SO­CI­ATED PRESS

NFL star Johnathan Calvin, of the Green Bay Pack­ers, rides a kid’s bike to a train­ing camp on Thurs­day, in Green Bay, Wis­con­sin.

PRO­VIDED TO CHINA DAILY

The Walkie Talkie build­ing

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