Business
11:11, 28-Jul-2017
Hong Kong firm beats Brexit blues with record London skyscraper deal
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Hong Kong-based Lee Kum Kee (LKK), a sauces and condiments group best known for its oyster sauce, said on Thursday it would buy London’s landmark “Walkie Talkie” skyscraper in a record-breaking transaction for a single building in the UK.
LKK agreed to acquire the property from Land Securities Group and Canary Wharf Group for 1.28 billion pounds (1.68 billion US dollars).
London has emerged as a hot property market for foreign investors, including those from the Chinese mainland and the Hong Kong Special Administrative Region, who have piled in after Britain's vote to leave the European Union weakened the pound.
The City of London financial district including the Gherkin (R) and the 'Walkie Talkie' (C front) towers are seen in London on June 24, 2016 after the announcement that the UK had voted to leave the European Union in a national referendum. /AFP Photo
The City of London financial district including the Gherkin (R) and the 'Walkie Talkie' (C front) towers are seen in London on June 24, 2016 after the announcement that the UK had voted to leave the European Union in a national referendum. /AFP Photo
Chinese property magnate Cheung Chung-kiu's CC Land agreed in March to buy a London skyscraper, that was given the nickname "Cheesegrater" and owned by British Land and Oxford Properties, for 1.15 billion pounds.
For LKK, the deal to buy the "Walkie Talkie" building is its first outside of Hong Kong and China.
The skyscraper, developed as a joint venture between Land Securities and Canary Wharf Group in 2010.
The property, designed by architect Rafael Viñoly, is known for its Sky Garden, which has become a tourist attraction.
Land Securities, Britain's largest listed property developer, said it would receive 641 million pounds from the sale. It said it would return 475 million pounds to shareholders, with the rest used to repay debt.
Land Securities, whose shares were up 2.1 percent in early trading, said its half of the property share was last valued at 567.5 million pounds as of March 31.
While foreign investment has boosted some parts of the property market, sales have slowed down overall because many British people have been hit by the inflationary pressures caused by the increase in the price of imports.
(Source: Reuters, AFP)
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