100 Leadenhall Street in London
Hong Kong-listed real estate company Lai Sun Development has closed on its acquisition of 100 Leadenhall Street, a 125,000 square foot (11,600 square metre) office building in the City of London, according to reports in the London media.
Lai Sun, which was advised by Savills in the transaction, purchased the property for £107 million ($162 million) from German fund manager Nordcapital Immobilienfonds.
100 Leadenhall is adjacent to Bankside House, a property at 107-112 Leadenhall Street that Lai Sun acquired from RBS in April 2014 for £60m ($90.9 million). Lai Sun already owns 36 Queen Street in London.
Could Lai Sun Be Planning Its Own London Project?
Lai Sun had already acquired Bankside House, adjacent to 100 Leadenhall
By acquiring two adjoining properties next to 30 St Mary’s Axe (widely known as the Gherkin), and opposite the planned Scalpel Tower, Lai Sun’s deals have led to speculation that the Hong Kong developer has plans for their own project next to two London landmarks.
While Bankside House has leases signed until 2025, 100 Leadenhall is currently let to ACE Global Markets, whose lease expires in January 2018. The Leadenhall acquisition is likely to increase speculation that Lai Sun will buy out the leases at Bankside House to facilitate development of its own office project in the City.
Lai Sun already owns several high end hotels regionally in Asia as well as commercial buildings in Hong Kong, including the AIA Central building on Connaught Road and Causeway Bay Plaza 2 in Causeway Bay.
Chinese Investors Like London
Since Ping An Insurance bought the Lloyd’s of London building in July 2013, the UK’s financial centre has become a favorite target for Chinese real estate investors.
In late 2013, Chinese sovereign wealth fund CIC picked up a London office park for £800 million, and mainland developers including Dalian Wanda and Greenland Group also plan billion dollar projects in London.
During 2014, China Life Insurance led an international consortium that purchased a building on Canary Wharf for £795 million and from across the straits, Taiwan’s Cathay Life bought the Woolgate Exchange in London for £311 million.
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