David BurrowsForeign interest in the UK commercial property market appears to be buoyant. Middle Eastern investors announced today that they are to buy a 20-storey commercial building on London’s Southbank for £266.5m, PA reports.
Wolfe Asset Management, owned by Dubai’s Al Gurg family, has exchanged contracts to buy the three-year old building at 240 Blackfriars Road from the Great Ropemaker Partnership (GRP), which is a joint venture between Great Portland Estates and Ropemaker Properties.
The site was constructed in 2014 and is currently let to seven office tenants including UBM, Boodle Hatfield, Ramboll and Lonely Planet Publications, who pay rents ranging from £47 to £65 per square foot.
The building also hosts retail tenants including Pret a Manger and Abokado.
The deal includes an adjoining retail and residential building known as Cubitt House, where ten apartments have been sold on long leases.
In total, rental income for the site is estimated to be around £11.2m per year. The deal is set for completion in January.
Iconic design
Commenting on the deal, Abdulla Al Gurg, group general manager of Wolf Asset Management, said: “The 240 Blackfriars Road building is iconic in its design and an instantly-recognisable feature of the London skyline.
“It perfectly fits within our strategy of owning best-in-class commercial buildings in prominent London locations.
“Southbank is regarded as one of London’s most vibrant districts and thriving sub-markets, with a unique combination of world-renowned arts and theatre institutions, hotels, luxury residential developments, excellent connectivity and prime real estate.”
240 Blackfriars Road is the latest in a recent string of property deals struck by international investors in recent weeks.
Lloyds HQ
Chinese investment group Hengli Investments Holding Group signed a 20-year lease on a property at 25 Gresham Street in London earlier this month that has served as Lloyds Banking Group’s headquarters since it was constructed.
The financial terms of the deal were not disclosed.
It followed news that Cheung Kei Group forked out £270m for a Canary Wharf tower that is currently let to businesses including US banking giant JP Morgan, which rents 10 floors, as well as Time Inc, American Express, Balfour Beatty and Cision Gorkana.
The company bought the site – at Five Churchill Place – from Said holdings.
Earlier this year, Hong Kong food conglomerate Lee Kum Kee spent £1.3b buying out Canary Wharf Group’s and Land Securities’s 50% stakes in the “Walkie Talkie” skyscraper in June.
London’s landmark 'Cheesegrater' building was also sold in March to the investment vehicle of Chinese property magnate Cheung Chung Kiu for £1.15bn.
