Hong Kong firm CC Land Holdings has agreed to buy 1 Kingdom Street, Paddington, W2, for nearly £300m – a 4.75% yield – from TIAA-CREF and Swedish national pension funds AP1 and AP2.
The 260,000 sq ft office was part of TH Real Estate’s €2bn (£1.7bn) pan-European Cityhold Office Partnership, which has recently scaled down its exposure to London.
CC Land Holdings is an investment vehicle for Chinese billionaire Cheung Chung-Kiu.
Cityhold bought the office in 2011 for £230m, a 6% yield, from Aviva Investors and Union. Vodafone is the major occupier, alongside Statoil and Shire Pharmaceuticals.
In November, it sold The Peak, Wilton Road, SW1, to Wolfe Asset Management, the property arm of Dubai’s Easa Saleh Al Gurg Group, for £145m – a 4.27% yield.
The fund is reinvesting some cash into the development of the 300,000 sq ft “Can of Ham” at 60-70 St Mary Axe, EC3, which is scheduled to complete in 2018, as well as European cities such as Paris, Berlin and Madrid.
JLL and Michael Elliot acted for TH Real Estate; Kieran D Cotter & Co advised CC Land Holdings.
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