Hong Kong-listed China Resources Land is making its first property acquisition in the UK with the £307m purchase of a trophy City of London office block.
The state-backed property developer and investor has placed 20 Gresham Street, EC2, under offer for around £307m – a net initial yield of 4.1%.
AXA Investment Managers – Real Assets instructed Cushman & Wakefield to sell the building in February for £315m – a net initial yield of 4%.
The building provides 240,000 sq ft of prime offices and is majority let to ICBC Standard Bank with reversionary rents across the building of £53 per sq ft overall, producing an annual income of around £12.8m.
Other occupiers include petrochemicals company Koch Supply & Trading and law firms Sacker & Partners and TLT Solicitors.
What is China Resources Land?
Founded in 1996, CR Land is a major property investment and development company in China. It is 61.3% owned by China Resources (Holdings) Company, a conglomerate ultimately owned by China’s state council.
At 31 December 2016 the Hong Kong-listed company had projects in 56 cities across China and a landbank with a gross floor area of 482.8m sq ft.
The developer has eight residential product lines and has also built out large mixed-use schemes such as the 5.7m sq ft Shanghai MixC in the Minhang district, a suburb of Shanghai. The scheme includes a hotel, shopping centre, 11 office buildings, a museum and a sky garden.
AXA IM – Real Assets and CR Land could not be reached for comment. Cushman & Wakefield declined to comment.
To send feedback, e-mail Louisa.Clarence-Smith@egi.co.uk or tweet @LouisaClarence or @estatesgazette
