HK firm nears deal for UK’s ‘Cheesegrater’
HONG KONG: A Hong Kong property developer has confirmed the near completion of its almost US$1.5 billion (RM6.48 billion) purchase of London’s “Cheesegrater” tower, as it takes advantage of the pound’s slump to snap up addresses in the British capital.
CC Land’s acquisition of the 224-metre-highLeadenhall Building, which earned its nickname from its wedge shape, is the biggest single property purchase in the United Kingdom since 2014, when a Qatari wealth fund bought London’s HSBC Tower for £1.2 billion (RM6.7 billion).
The deal takes advantage of the slump in the pound, which plunged after the country voted to leave the European Union and is currently trading 12 per cent lower against the dollar.
“Devaluation of the pound sterling is one of the major factors to draw interests to this market,” said CC Land in a filing to the Hong Kong stock exchange on May 1, confirming the US$1.47 billion purchase from real estate giant British Land and Oxford Properties.
“Both leasing as well as investment demands in prime office buildings have remained strong,” the firm said in the filing.
Britain’s economic growth has slowed to its weakest pace in a year, as the country prepares for a general election overshadowed by its planned exit from the European Union. AFP