Hines and HSBC Alternative Investments have gone back to underbidders to seek offers for the 460,000 sq ft Broadgate Quarter, EC2, after a deal to sell it to a Chinese investor for £455m – a 4.5% yield – collapsed.
It is unclear whether the recent volatility in the Chinese equity markets is to blame for the investor’s withdrawal.
Opinion and indicators in the market have been divided over the impact that the turmoil and devaluation of the yuan is having; whether it will see Chinese investors withdraw because of non yuan-denominated assets becoming more expensive and assets within China falling in value, or whether it accelerates Chinese investors’ need to diversify.
The chaos in the Far East continued to affect the London Stock Exchange this week, as the FTSE All Share Index fell by nearly 3% from the end of last week to Wednesday before recovering to only around 0.6% down on Thursday.
Listed property companies were largely spared, however, with the likes of British Land, Land Securities, intu, Hammerson and Derwent London all seeing their share prices increase marginally over the week.
New Chinese investment continued to flow into London, suggesting a lack of concern among some parties, with conglomerate HNA Investment Holding, advised by EY’s corporate real estate finance team, buying 30 South Colonnade, E14, from KanAm for more than £215m in what was HNA’s first real estate deal in Europe.
