Addleshaw Goddard has advised Hong Kong investor, C C Land Holdings on its acquisition of One Kingdom Street, London, from TH Real Estate on behalf of the Cityhold Office Partnership (CHOP) for £292m.
Located in Paddington Central, the Grade A, 264,898sq ft office building, is home to tenants including Vodafone, Shire, Mysis and Statoil and was sold at a net initial yield of 4.86% and a capital value of £1,100 per sq ft.
One Kingdom Street, which was the first building to be purchased by the CHOP fund (a JV between US financial services institution TIAA and two of Sweden’s national pension funds, AP1 and AP2) is spread over nine floors and was designed by Sheppard Robson architects in 2008.
Advising on the acquisition, was AG's Head of Funds and Indirect Real Estate and joint Head of the Real Estate Sector, Lee Sheldon, alongside Jonathan Powling and Michael Harris (Funds and Indirect Real Estate), Paul Concannon (Tax), Iain Hindhaugh (Real Estate) and James Barnett (Real Estate).
Lee Sheldon stated: "This acquisition is a sure sign of the resilience of the London office market notwithstanding the recent headwinds. The effects of Brexit have meant there has been an influx of investment from international investors – who still believe in the fundamentals of London both as a gateway city and a market that can offer long-term returns."
Peter Neal, Senior Portfolio Manager, TH Real Estate, comments: "We are delighted to have sold One Kingdom Street. This sale marks the end of the London disposal programme having sold the Peak in Victoria in December last year for £145m. Efforts will now be focussed on actively managing the residual £700m London portfolio and selectively redeploying the capital into other London sub-markets."
Michael Elliott, JLL and Ashurst acted for TH Real Estate. C C Land Holdings was represented by Kieran D. Cotter & Co and Addleshaw Goddard and Deloitte.