At the start of May a record breaking piece of property investment in the City of London was announced. Chinese company CC Land Holdings Ltd is to purchase 122 Leadenhall Street, referred to by many as the Cheesegrater, for £1.135 billion.
The fee is the largest ever paid for a property in the area and the second highest in the whole of the UK. Only the £1.18 billion 2014 purchase of HSBC tower in Canary Wharf beats it. The gap between the two values is even less when you consider that the Chinese company has taken on an estimated £12.7 million debt as part of the purchase.
The news of the deal comes after British Land revealed that they had been exploring a sale in March. The delays were caused by shareholders of CC Land Holdings taking extra time to grant permission. The purchase was finally revealed in the first week of May. It is yet another example of a Chinese company choosing to invest in a trophy property in the prime London market.
The record property investment in the City of London stands out because the Cheesgrater is the tallest building in the area. It rises 737 feet and has an eye-catching design. Only three other buildings in the capital are taller; Heron Tower, One Canada Square, and the Shard.
In addition to the height of the property the £1.135 billion is also the highest amount a Chinese company has ever invested in real estate in the UK. It shows that the city is still attractive on a global scale, particularly in terms of high profile properties. The reason these are so highly sought is they can offer stable, long-term rental yields.
At Finefair we keep an eye on the news for stories about property investment in the City of London because they give an idea of the market and buyer behaviour. This purchase is definitely noteworthy and could have a big impact on other investors too.