The biggest developer in China by market value is lining up a £175m off-market play for the Centrium building on Kingsway.
Hong Kong listed China Overseas Land and Investment is under offer to buy the building at 14 Kingsway, WC2, from GLL Real Estate Partners on behalf of German pension fund BVK for £960 per sq ft, reflecting a 5.25% yield.
Centrium, which occupies a prominent position at the junction of Kingsway and the Aldwych, comprises 180,000 sq ft of offices which are multilet to tenants including the Ashmore Group and Japanese pharmaceuticals giant Takeda.
A sale of the building would be COLI’s second acquisition in London in less than a year.
EG revealed the company had bought One Finsbury Circus, EC2, last December for £150m.
COLI’s market cap at the time of its August half year results was HK$191bn (£15.2bn).
In the first half of this year the company, which is majority owned by China State Construction Engineering Corporation, booked net income of HK11bn (£880m).
Around three quarters of COLI’s operating profit comes from China where it is active in the residential and office markets.
The company is also active in Hong Kong and Macau.
Jack.Sidders@estatesgazette.com
