British Land and Oxford Properties have exchanged contracts for the sale of the Leadenhall Building to CC Land for £1.15bn.
CC Land, an investment vehicle of property magnate Cheung Chung Kiu, will buy the building, known as the Cheesegrater, in an all-cash purchase.
The sale is subject to approval by the shareholders of CC Land in a Special General Meeting in accordance with the Hong Kong Listing Rules. The Chairman of CC Land, Cheung Chung Kiu, is the sole shareholder of two companies (Fame Seeker Holdings and Thrivetrade) which hold around 50.4% of the issued share capital of CC Land, and has given an irrevocable undertaking that these companies vote in favour of the resolution approving the transaction.
Completion of the deal is expected to take place no more than five business days after shareholder approval is obtained, provided it is obtained no later than 28 June 2017, unless extended by agreement.
Tim Roberts, head of offices and residential, British Land, said: “British Land and Oxford Properties took a bold step at the early stages of the UK’s economic recovery to develop The Leadenhall Building to generate a high quality, long term income stream. It’s a decision which has really paid off. Through a strong, collaborative partnership, we have delivered an iconic, award-winning building let to high calibre occupiers at record City rents. This sale shows continued investor appetite for best in class, well located property in London.”
Paul Brundage, executive vice president and senior managing director - Europe, Oxford Properties, said: “Oxford Properties has enjoyed a highly successful partnership with British Land through our joint investment in the development, delivery and management of this iconic building. We have delivered on our strategy of ensuring that The Leadenhall Building meets its potential to become one of the most commercially successful investments in London.
“The Leadenhall Building has been a cornerstone of our London business and has propelled Oxford Properties to a leading position in European real estate development and investment. We are fully committed to the UK and Europe for the long term and are looking forward to pursuing further investment opportunities going forward either on our own or with like-minded partners such as British Land.”
British Land and Oxford Properties developed and own the Leadenhall Building as an investment in a 50/50 joint venture formed in 2010.
Construction started in early 2011 and completed in summer 2014. The building is fully let, with an average remaining lease term of over 10 years to break, and has achieved record rents for the City of more than £100/sq ft. It is occupied by businesses including insurers Aon and MS Amlin, and the building’s architects Rogers Stirk Harbour + Partners.
At 736 feet, the Leadenhall Building is the tallest building in the City of London, providing 610,000 sq ft of office accommodation over 46 floors.
Proceeds received by British Land for its interest will initially be used to pay down revolving credit facilities.
British Land and Oxford Properties were advised by Cushman & Wakefield, Eastdil Secured, Mayer Brown and Herbert Smith Freehills.