Chinese investor buys London landmark

Beijing Capital Development Holdings (also known as Beijing SHOKAI) has made another property acquisition in London after Grosvenor Europe agreed to the sale of Fleet Place House for 96.5 million pounds ($120 million).

Fleet Place House has sold for 96.5 million pounds to a Chinese property investment company.

Grosvenor Europe, one of four operating companies of a privately owned international property group, instructed BNP Paribas Real Estate to sell the property.

Following a competitive bidding process, which included investors from the UK, US and Asia, the prime multi-let office and retail investment was sold to Beijing SHOKAI.

Grosvenor bought Fleet Place House in 2013 from German family trust AM Alpha on behalf of the Grosvenor London Office Fund for 68 million pounds, a net initial yield of 5.9 percent.

The building on Holborn Viaduct provides office, retail space and ancillary accommodation comprising approximately 8,543 square meters arranged over basement, ground and eight upper floors.

Scott Rowland, fund manager at Grosvenor, said: "Since purchasing Fleet Place House, Grosvenor has upgraded both the asset and the income profile, driving income growth and delivering very attractive returns to our investors."

The property is currently let to various tenants, including Samsung, Bevan Britain, Dimension Data, Pret a Manger and Starbucks.

At the end of 2016, Beijing SHOKAI paid approximately 210 million pounds to Korea's Samsung Asset Management for 30 Crown Place in the UK's capital, the headquarters of law firm Pinsent Masons.

In 2015, the Chinese investor agreed an off-market deal to buy Friary Court from German closed-ended fund manager HIH Global Invest.

The Beijing company paid around 67 million pounds for the 6,967 square meter office building, which reflected a net initial yield of 4.5 percent.

Beijing SHOKAI's scope of business includes the development of commercial, residential and affordable housing, and property operation, including hotel operation and property management.

As of June 30, the investor had total assets of approximately 20 billion pounds.

Beijing Capital Development Holding develops and manages property in China and has invested and set up overseas subsidiaries in the UK, Australia, Hong Kong, Macau and the US.

Grosvenor said it could not reveal any details of the transaction and Beijing SHOKAI had yet to reply to enquiries at the time of publication.