HK food giant buys London landmark in record deal
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 investmentgrade-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.